EUR/USD Plunges to Four-Week Low Amid Hawkish Fed Bets

The EUR/USD currency pair has fallen to a four-week low due to increased expectations of a hawkish Federal Reserve (Fed) at its upcoming policy meeting.

This shift in sentiment follows the release of the August Consumer Price Index (CPI) data, which showed headline inflation remaining sticky at 3.4% Year-on-Year (YoY), as expected.

Core CPI, excluding volatile food and energy items, cooled down to 2.4% from 2.5% in July.

The European Central Bank (ECB) hiked policy rates last week, but its president, Christine Lagarde, did not provide any meaningful comments regarding the interest rate outlook.