Forex
EUR/USD Plunges on Hawkish Fed Expectations
The EUR/USD pair dipped to 1.1585 in early Asian trading on Monday due to increased expectations of a Federal Reserve rate hike this week.
This comes after US inflation data showed a 0.4% month-on-month rise, taking the annual rate to 3.4%. The core CPI also advanced 0.3%, beating a 0.2% forecast.
Market pricing now implies nearly a 91% chance of a quarter-point Fed hike at the September meeting, up from 72% before the US PPI release.