Forex

Euro Weakens as US Inflation Data Reinforce Hawkish Fed Outlook

Guavy AI Editorial Team Published September 14, 2026

Instruments

EUR USD

The Euro (EUR) has been declining against the US Dollar (USD) in Monday's European trade, with EUR/USD down 0.28% and trading near a four-week low of 1.1565.

This decline is largely due to market participants pricing in a more hawkish stance from the Federal Reserve following the latest United States (US) inflation figures for August.

The latest Consumer Price Index (CPI) data showed that headline inflation remained unchanged at 3.4% year-on-year, but accelerated on a month-on-month basis to 0.4%, matching expectations.

This stronger monthly inflation profile has further fueled expectations that the Federal Reserve could adopt a more hawkish tone at its September policy meeting.

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