Euro Recovers Losses as DAX Surpasses 24,000 Points After ECB Rate Hold

Frankfurt – The euro reduced its losses during Thursday's trading, stabilizing near 1.1733 dollars, while the DAX index recorded slight gains, trading above 24,000 points. This movement followed the European Central Bank's decision to keep interest rates unchanged, a move that matched market expectations.

Neutral Monetary Message Supports Stability

The European currency's stability came after ECB policymakers confirmed that current interest rates are considered neutral, neither restricting nor stimulating economic activity. They emphasized that future decisions will depend on data and will be made on a meeting-by-meeting basis, without a predetermined path for rates.

Updated economic forecasts from the bank indicate that inflation will remain close to the target level of 2%, with projections for overall inflation reaching:

• 1.9% in 2026
• 1.8% in 2027
• 2.0% in 2028

Conversely, core inflation is expected to decline slightly below 2% by 2027, reflecting continued price pressures in certain sectors, particularly services.

German Stocks React Positively

In the stock markets, the DAX benefited from the ECB's less hawkish tone and raised economic growth expectations, as domestic demand improved the outlook for the European economy, with GDP growth projected at:

• 1.4% in 2025
• 1.2% in 2026
• 1.4% through 2028

Leading the gains were Siemens Energy shares, which rose by about 2.5%, followed by Deutsche Bank and Zalando with gains exceeding 1% each. In contrast, shares of Scout24, Symrise, and Volkswagen recorded limited declines.

Eyes on Lagarde

Markets are now looking forward to the upcoming press conference by ECB President Christine Lagarde, seeking clearer signals regarding the timing of any potential shift in monetary policy throughout 2026.