Euro Struggles to Regain Ground Against Strong Dollar

The euro continues to struggle in the short term, facing a challenging environment. Despite recent US inflation data, the dollar remains firmly supported, leading to a decline of roughly 0.6% in EUR/USD over three consecutive losing sessions.

The release of the US Core Personal Consumption Expenditures (Core PCE) report showed a monthly reading of 0.2%, below market expectations of 0.3%. However, the annual measure remains close to 3.0%, a level that has shown little change since June.

This has led to slightly reduced expectations of a more aggressive Federal Reserve, with CME Group probabilities indicating roughly a 60% chance that interest rates will remain unchanged at 4.00% during the October 28 meeting.