Euro's Losing Streak Continues Despite Rate Hike by ECB and Fed

The Euro has continued its downward trend after the European Central Bank (ECB) raised its deposit rate to 2.50% on September 10, a move that hasn't been enough to boost the currency.

Since then, the Euro has fallen every session, with the largest drop coming after the Federal Reserve's (Fed) decision to raise its own interest rate by a quarter point to 3.75-4.00% on Wednesday.

The gap between the Fed's and ECB's rates remains at 1.375 points, which is the same as before either meeting. However, the Fed's forecast that US inflation won't return to 2% until 2029 has added pressure on the Euro.

Thursday's inflation number for the eurozone in August is expected to be released, but it may not have a significant impact on the currency. ECB Chief Economist Lane is scheduled to speak on Thursday at 07:00 GMT, and the next ECB meeting is six weeks away on October 29.