EUR/USD Tumbles on Hawkish Fed Expectations and Warsh's Inflation Comments

The Euro (EUR) is experiencing pressure against the US Dollar (USD), trading 0.2% lower to near 1.1593 during the European session on Tuesday.

This downward trend is due in part to increased expectations that the Federal Reserve (Fed) will raise interest rates in the near term, as indicated by the hawkish tone of Fed Chair Kevin Warsh.

In his address at the Jackson Hole Symposium, Warsh emphasized that the Fed still has work to do to bring inflation back to its 2% target and signalled openness to further rate hikes unless underlying inflation shows significant improvement.

The US Dollar Index (DXY) is up 0.2% to near 99.60 at press time, reflecting the increased hawkish sentiment.