Fed Expectations Weigh on Euro as Dollar Continues to Rise

The EUR/USD pair has been experiencing pressure in recent trading sessions, declining by nearly 0.6% over the past three days.

This selling pressure is largely due to expectations of a more restrictive Federal Reserve, which continues to support the U.S. dollar.

The interest-rate differential between the United States and Europe remains significant, with the Fed's benchmark rate at 4.00% compared to the European Central Bank's 2.65%

Market probabilities suggest a 55% chance of another interest rate hike to 4.25% at the October 28 meeting, indicating that expectations for additional tightening remain intact.