Euro Slumps to New Lows Amid Strong US PMI Data

The Euro has slipped to levels not seen since late July as strong US economic data boosted bets on another Federal Reserve rate hike in October.

The preliminary S&P Global US Composite Purchasing Managers' Index (PMI) rose to 58.4 in September, beating forecasts and showing a sharp rise in prices paid by businesses, which adds to inflation concerns.

US Dollar buyers have been drawn in after the Fed raised rates last week and signaled another increase could follow as it works to bring inflation back to its 2% target.

With the US Dollar Index (DXY) trading around 101.00, its highest level since July 31, traders now see a 68% chance of a hike at the October meeting, up from 53% before the PMI release.