Euro Struggles as Markets Expect Higher Interest Rates

The euro has been facing significant challenges in recent days, with the EUR/USD pair declining by nearly 0.81% over the last four trading sessions.

This decline has reinforced a bearish bias in favor of the U.S. dollar, and selling pressure remains strong as markets continue to anticipate higher interest rates from the Federal Reserve.

The Fed's decision tomorrow is expected to further support this trend, with a 25-basis-point rate hike widely priced in by markets and expectations extending to subsequent policy meetings.

According to CMEGROUP, there is a greater than 92% probability of a 25-basis-point rate hike, which would lift the benchmark rate from 3.75% to around 4.00%.