Forex
Euro Faces Third Straight Decline Amid Rising Rate Hike Expectations
The euro is facing its third consecutive decline as market bets on a Fed rate hike surge following stronger-than-expected U.S. inflation data.
On Monday, September 14, during Asian trading hours, the euro fell to around 1.1585 against the U.S. dollar, with the probability of a September rate hike climbing from 72% to roughly 86% according to the CME FedWatch Tool.
The European Central Bank's hawkish stance has provided some support for the euro, but analysts at the Bank of Nova Scotia note that the ECB's latest projections show inflation remaining above target at the end of the forecast period.