Euro Tumbles Amid Rising Expectations of Another Rate Hike

The Euro continued its downward trend despite strong economic data from Europe. The European Central Bank (ECB) has already raised interest rates to 2.50% this year, but the market is waiting for more action from policymakers. ECB Executive Board member Schnabel and Chief Economist Lane are set to speak on Thursday, pointing to recent surveys that could support another rate hike.

The US economy also released strong data, beating forecasts in various categories. The Federal Reserve (Fed) is expected to raise rates again on October 28, but a jump in weekly jobless claims on Thursday could cool bets on an October Fed hike.

Germany's governing coalition has been arguing in public after losses in two state elections, adding to the uncertainty surrounding the Euro. The currency's support level at 1.1350 is being closely watched, and a daily close above 1.1500 would take the short off the table.