ECB leaves rates unchanged as expected, with the euro extending losses to drop 0.3% to $1.1664. German bonds erase modest declines, while money markets turn slightly more dovish into year-end, now pricing about 7bps of easing.

A lower 2027 inflation projection may be adding pressure, but euro selling momentum started earlier. One-week options flipped to a dollar premium just before the decision, reversing the recent bullish tilt. FX bias may be more linked to US CPI at the bottom of the hour.