EUR/USD Softens as Hawkish Fed Signals Weigh on Euro

The EUR/USD currency pair has softened to near 1.1360 in Tuesday's early European session, maintaining its bearish bias below key averages.

This comes as the US Treasury bond yields continue to surge and hawkish signals from Federal Reserve officials pressure the Euro, pushing it to its lowest level since July 28 against the US Dollar.

Cleveland Fed President Beth Hammack said that inflation risks remain high and restrictive monetary policy should be maintained, while Fed Governor Michael Barr emphasized that 'further policy adjustments are likely to be needed' to curb inflation.

Markets are now pricing in nearly a 70.3% probability of a quarter-point rate hike from the Federal Reserve at the October meeting, according to the CME's FedWatch tool.