EUR/USD Pair Weakens Below 1.14 on Hawkish Fed Signals
The EUR/USD pair weakened to near 1.1380 during early Asian trading hours on Thursday, extending its decline as hawkish signals from the US Federal Reserve (Fed) boosted the US Dollar against the Euro.
Traders are keeping an eye on the US weekly Initial Jobless Claims report and Fed speak later in the day for further cues. The US S&P Global Purchasing Managers Index (PMI) showed a stronger-than-expected rise to 52.0 in September, while the Services PMI eased to 51.7.
Fed Governor Michael Barr stated that 'further policy adjustments are likely to be needed' to control inflation, echoing similar sentiments from Fed President Tom Barkin and Boston Fed President Susan Collins. Markets now price a nearly 69.7% chance of a quarter-point rate hike in October, up from 48.7% one week ago.