Euro Softens Below 1.1600 Amid Aggressive Rate-Hike Bets

The EUR/USD pair declined to near 1.1585 on Monday as markets priced in an aggressive Federal Reserve (Fed) rate-hike after hotter US inflation reports.

US Consumer Price Index (CPI) accelerated in August, with the 12-month increase at 3.4%, both readings came in line with market expectations. The core CPI increased by 0.3% on a monthly basis, beating the forecast of 0.2%

Financial markets have priced in nearly a 91% probability of a quarter-point rate hike at the Fed's September meeting, up from 72% before the US PPI data.