EUR/USD Weakens Amid Middle East Tensions and Hawkish Fed Stance
The EUR/USD pair has weakened to around 1.1575 in the early European session on Wednesday, and further consolidation cannot be ruled out due to directionless RSI momentum.
The pair lost traction as the US Dollar strengthened against the Euro amid hawkish Federal Reserve stance and escalating Middle East geopolitical tensions.
Traders are watching the upcoming Eurozone Retail Sales and US employment data, which are due on Friday. The escalation of tensions in the Middle East is boosting safe-haven flows, supporting the Greenback and creating a headwind for the major pair.
Fed Chair Kevin Warsh's hawkish remarks at the Jackson Hole symposium have contributed to the USD's upside, with expectations of a September rate hike rising to 68%, up from below 40% before the speech, according to the CME FedWatch tool.