EUR/USD Soars as US Dollar Loses Momentum Amid Fed Rate Hike Uncertainty

The EUR/USD currency pair saw a slight gain of 0.13% to around 1.1356 during Wednesday's European trading session, as the US Dollar came under pressure.

This move comes after New York Fed Bank President John Williams refuted the urgency for an interest rate hike in September, which had previously been a strong possibility with odds at 70.9% according to the CME FedWatch tool.

The odds of an interest rate hike have since diminished to 44.8%, and traders are now reassessing their expectations.

Investors are also waiting for the German preliminary Harmonized Index of Consumer Prices (HICP) data for September, which is expected to show price pressures accelerated to 3.1% Year-on-Year from the previous reading of 2.9% in August.