The European Central Bank said in a blog post that the euro zone has weathered this year's energy shock better than expected, helped by lower reliance on fossil fuels, stronger fiscal support and an AI investment boom. ECB economists estimate the economy now depends on oil only about half as much as in the early 1990s, and higher renewable and nuclear generation has weakened the link between gas prices and electricity costs in several countries. AI-related trade has become an 'important tailwind,' and the fiscal impulse of 0.5% of GDP was twice the size expected at the end of last year, mainly due to German spending on defence and infrastructure. The economists warned that much of this support may prove temporary and that the bloc could be exposed if geopolitical tensions worsen or energy markets face fresh disruption. The findings come as the ECB debates further interest rate increases to curb an energy-led inflation surge, with a third hike of the year expected in December.
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EUR/USD
▲ Likely positiveRelevance: low
| Market | Currencies |
|---|---|
| Close on 10/20/2026 | 1.12376 |
| Change that session | +0.22% |
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