EUR Slumps Below 1.1600 as Warsh Reignites Fed Rate Hike Fears

The Euro (EUR) slipped below 1.1600 against the US Dollar (USD) after Federal Reserve Chair Kevin Warsh emphasized the importance of price stability in a speech at the Jackson Hole Symposium.

Warsh's hawkish-leaning remarks sparked a sharp repricing of Fed expectations, with markets now pricing in around a 57% chance of a September interest-rate hike, up from roughly 36% before his speech.

The US Dollar Index (DXY) rose 0.44% to around 99.55 as a result, while the EUR/USD fell 0.48% on the day, trading at 1.1605.