Euro Slides Below Key Averages Amid Ongoing Rate Gap

The euro has been sliding for several sessions following the European Central Bank's (ECB) decision to raise its deposit rate to 2.50% on September 10.

This move was matched by the Federal Reserve, which raised rates to a 3.75-4.00% range, putting the policy midpoint at 3.875%, and keeping the spread over the ECB unchanged at 1.375 percentage points.

The euro's slide has been steady, with EUR/USD falling in every session since the rate hike and trading just above 1.1450, below its longer-run averages.

Attention turns to the eurozone's final August inflation estimate due on Thursday, which is forecasted at 2.5% next year, unchanged from the flash print.