EUR/USD Pairs Sinks Below 1.1700 Amid Slowing Fed Hike Odds

The EUR/USD pair edged lower below 1.1700 despite decreasing expectations of a Federal Reserve interest rate hike, according to the CME FedWatch Tool.

Recent data releases have shown modest price increases on a monthly basis, but inflation remains above the 2% target set by the Fed.

Financial markets are now pricing in a continuation of the European Central Bank (ECB) hiking cycle, with an 90-94% probability of a 25 basis points hike to 2.50% at the next policy meeting scheduled for September 9.