Fed and ECB Rate Hikes Leave Euro's Losing Streak Unchanged

The Euro's losing streak continues as the Federal Reserve (Fed) matched the European Central Bank's (ECB) recent rate hike. The Fed increased interest rates by a quarter point, bringing its midpoint to 3.875%, while the ECB's rate remains at 2.50%. This means that the gap between the two central banks' rates is still 1.375 points.

The Fed's decision was accompanied by a forecast that US inflation will not return to 2% until 2029, which is a sign of concern about the economy's health. In contrast, the ECB's own forecast projects eurozone inflation at 2.5% next year.

ECB Chief Economist Lane is set to speak later today, and the next ECB meeting is scheduled for October 29, six weeks away. Meanwhile, Eurozone inflation data for August will be released on Thursday, but it may not have a significant impact on the currency's value.