ECB governing council member radev said inflation risks are skewed to the upside, while economic growth risks are skewed to the downside.

Major German economic research institutes on Thursday raised growth forecasts to 1.3% for 2026 and 1.1% for 2027, up from prior estimates of 0.6% and 0.9%, citing resilience to an energy-price shock tied to the Iran war. Ifo said its September business climate index rose to 89.9 from 88.8 in August, above the 89.0 analyst consensus. Preliminary PMI data released Wednesday showed German activity accelerating at the fastest pace in nearly a year.

The Swiss franc fell after the Swiss National Bank kept interest rates unchanged; EUR/CHF rose to 0.9411.