Euro Plunges Below 1.1600 as Markets Anticipate US CPI Release

The Euro (EUR) has retreated below 1.1600 against the US Dollar (USD), marking a moderate weekly decline for the currency pair.

Investors are awaiting the release of the US Consumer Price Index (CPI) data, which is expected to influence the Federal Reserve's decision on interest rates.

Futures markets are pricing a 67% chance of a quarter-point rate hike after the September 15-16 Fed meeting, up from 50% in the previous week.

The European Central Bank (ECB) raised its benchmark Rate on the Deposit Facility by 25 basis points to 2.5%, but the hawkish hike has lost momentum as risk aversion and Fed tightening hopes offset its impact.