Forex
Euro Falls to Fresh One-Month Lows Amid Hopes for Surprise Rate Hike
The Euro is under pressure against the US Dollar as it falls to fresh one-month lows. The year-to-date low of 1.1324 is getting closer, and bears are testing fresh one-month lows below 1.1360.
Market optimism about a negotiated end to the US-Iran conflict and lower Oil prices hasn't translated into a weaker US Dollar, as traders hold onto hopes for a surprise rate hike from the Federal Reserve later this week.
Futures markets are pricing a 35% chance of a 25 basis point hike on Thursday, up from 25% a week ago. This is supporting the US Dollar, which has reached fresh monthly highs against a basket of currencies.