Forex
Euro Stuck Near Lows as Fed Hike Bets Rise and Iran Tensions Escalate
The Euro remains near Friday's lows at 1.1578 due to rising bets of Federal Reserve interest rate hikes and cautiousness amid hostilities in Iran.
A hawkish speech by Fed Chairman Kevin Warsh at Jackson Hole has sparked a 25% increase in bets for a September hike, with CME's FedWatch Tool now showing 61% probability from 36% the day before.
Tensions between the US and Iran have also dampened risk appetite, with the US military striking an Iranian island on Sunday and Tehran responding by targeting US airbases in Jordan and the UAE.
Germany's preliminary HICP figures for August are expected to show yearly inflation accelerating to 3.1% from 2.8% in July, which could further weigh on the Euro.