EUR/USD Falls Below Moving Averages as Fed Rate Hike Looms

The EUR/USD closed near 1.1550 on Monday, down 0.42% from the previous day and below both its moving averages for the first time since late July.

The 50-day and 200-day Exponential Moving Averages (EMA) are now just two pips apart, with the pair having fallen through one line rather than two.

The rise in the Dollar against every major currency on Monday was accompanied by futures tied to the Fed's rate hike, which put Wednesday's increase at 100%, priced at 3.75% to 4.00%.

This would be the first American interest rate increase since 2023 and is expected to add to the pressure on the Euro.