Euro Edges Near Nine-Week High as Lagarde Remarks Loom
The euro continued its ascent against the US dollar in the European market on Wednesday, reaching a level of $1.1604 after rising 0.25%.
This gain brings the currency closer to its nine-week high against the greenback and comes as investors await remarks from European Central Bank President Christine Lagarde at the International Business Council meeting later today.
Lagarde's comments will likely reassess the likelihood of a European interest rate hike in September, with money markets currently pricing the probability at below 50% for a 25-basis-point increase.
The dollar has been under pressure due to declining US Treasury yields, which fell more than 0.5% today, and the US Dollar Index dropped 0.25% as investors focus on assessing the future path of US interest rates following recent data showing slower inflation and a labor market slowdown.