In European trading on Tuesday (Nov 1), / choppy downside, temporarily traded at 0.9946, down 0.20%.
Paolo Grignani, senior economist at Oxford Economics, said heightened inflationary pressures in the euro zone, combined with better-than-expected growth in the third quarter, would reduce the chances of a faster shift to the dovish side.
The ECB signalled on Thursday that the pace of rate rises could slow after two successive 75 basis point rises, but there are still plenty of concerns about the near-term outlook for inflation.
The ECB is expected to raise rates by 50 basis points in December and another 25 basis points in early 2023 before it stops the cycle.
Is extending its rally from weekly lows above 0.9900 thanks to comments from ECB President Christine Lagarde.
The dollar fell further on the back of improving risk profiles and falling Treasury yields.
Focus shifts to US ISM manufacturing PMI and resolution.
