Euro Struggles Near Three-Month Lows Amid Hawkish Fed Bets and Soaring Oil Prices

The euro hovered near its three-month lows on Friday at around 1.1380, after plummeting by 0.8% this week and almost 2% over the past fortnight.

This decline is largely due to a hawkish repricing of Federal Reserve expectations alongside rising US Treasury yields, as well as higher oil prices placing additional strain on the single currency.

Furthermore, Eurozone data offered little relief: Germany's GfK consumer confidence index for October slid to -30.6 from -26.6, compared with expectations of -27.4.

Brent crude remained near the critical $100 mark, posing severe pressure on energy-importing European economies, which have historically correlated with a notable drop in Eurozone industrial production during similar energy spikes.