Lagarde's Comments Send Euro Plummeting Back to Summer Low

ECB President Christine Lagarde's comments dampened expectations of further rate hikes, causing the Euro to fall back to its summer low near 1.1350 against the US Dollar.

Lagarde told a European Parliament committee that the energy shock is too large to ignore, but a measured response remains appropriate as there's no sign yet of energy costs feeding into wages.

The Eurozone inflation rate was 3.2% in August, with energy prices up 14.3% year-over-year, and the ECB's September staff projections have it averaging 3.0% this year and 2.5% in 2027.