Euro Gains Against USD as Waller Cools Rate Hike Bets

The Euro gained against the US Dollar on Thursday as Federal Reserve Governor Christopher Waller tempered expectations of a September rate hike. Waller said he is 'finally seeing some signs of disinflation in recent data' and that the rate decision in September hinges on August inflation.

Waller added that he would support keeping interest rates unchanged if the August data confirm recent progress. He also stated that the Fed's mandate is to achieve 'price stability and full employment, not financial conditions,' and that the current interest-rate setting 'could get us back to 2% inflation.'

The probability of a rate hike at the Fed's September 15-16 meeting has fallen to around 48% from 63% a day earlier, according to the CME FedWatch Tool.