Forex
Euro Slumps to Multi-Month Low Amid Dollar Strength and Geopolitical Tensions
The Euro has been under pressure for three consecutive sessions, trading near its lowest level since May at around 1.1330 in the Asian session on Wednesday.
The US Dollar's strength is contributing to this downward momentum, with market participants still pricing in over a 90% probability of at least one additional rate hike by year-end.
ECB President Christine Lagarde's dovish comments have also weighed on the Euro, running counter to market expectations for another rate increase in October.
The US-Iran standoff is continuing to support demand for the greenback as a safe-haven asset, with efforts to mediate a breakthrough between the two sides showing limited progress.