EUR/USD Rises as US Dollar Falls on Reduced Rate Hike Expectations

The EUR/USD exchange rate is up around 0.30% today as the US Dollar retreats to a one-week low, with investors scaling back bets on a September interest rate hike by the Federal Reserve.

Comments from Fed Governor Christopher Waller have contributed to this shift in expectations, as he stated that he's 'finally seeing some signs of disinflation in recent data' and that the 'rate decision in September hinges on August inflation.'

The European Central Bank is expected to raise interest rates by 25 basis points next week, which would mark its second rate hike this year.