The Euro (EUR) trades steady around 1.1580–1.1600, maintaining its recent upward momentum as investors anticipate the European Central Bank (ECB) will keep interest rates unchanged in the near term. The cautious tone from ECB policymakers, combined with stable inflation and economic performance, continues to provide underlying support for the single currency.

Traders now focus on Germany’s inflation data, including the CPI and HICP reports for October, which could offer fresh insights into the ECB’s next policy steps. Any indication of rising inflationary pressure could reinforce expectations of a longer policy hold, lending further support to the Euro.

On the other hand, the US Dollar (USD) remains steady as optimism builds around a potential resolution to the US government shutdown. The Senate has passed the funding bill, and the House is set to vote later today before sending it to President Donald Trump for approval — a move that would reopen federal offices and resume key economic data releases.

However, the Greenback’s momentum is capped by renewed Fed rate cut expectations, following weaker-than-expected ADP employment data. Private employers reportedly shed an average of 11,250 jobs per week in the four weeks ending October 25, compared with 14,250 previously. This reinforces market confidence that the Federal Reserve (Fed) will ease policy further in December.

According to the CME FedWatch Tool, traders are now pricing in a 68% probability of a 25-basis-point rate cut. This sentiment continues to weigh on the USD and supports a cautiously bullish outlook for EUR/USD in the near term.