Euro-Dollar Falls Amid Dollar Strength and Expectations of ECB Hikes

The Euro-Dollar exchange rate fell to 1.1408 on Wednesday, nearing its late July low of 1.1353. This decline comes despite a three-and-a-half year high in Eurozone activity, with the composite PMI rising to 53.1 in September from 52.0.

Elias Haddad, Global Head of Markets Strategy at Brown Brothers Harriman (BBH), notes that 'the Eurozone September PMI was stronger than anticipated and backs additional ECB hikes.'

The dollar's strength is the main reason for the EUR/USD underperformance. The Dollar Index edged up to 100.7 in Asian trading, a third consecutive session of gains.

Brent crude has dropped to just below $100 a barrel after five days of declines, but this has not yet had an impact on the euro's value.