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EUR/USD slides toward 2026 low as Fed hike odds rise
EUR/USD was last at 1.1362 after testing one-month lows below 1.1360, while CME FedWatch pricing showed a 35% chance of a 25 basis point hike on Thursday.
The euro remained under pressure against the US dollar on Tuesday, with EUR/USD falling to fresh one-month lows below 1.1360 and edging closer to its year-to-date low at 1.1324, according to FXStreet.
FXStreet attributed the move to continued downside momentum for EUR/USD despite some risk optimism linked to expectations for a negotiated end to the US-Iran conflict and a 12% decline in Brent oil prices.
The outlet said the US dollar strengthened instead of weakening, as traders maintained hopes the Federal Reserve could deliver a surprise rate hike later this week, with CME Group’s FedWatch Tool showing a 35% chance of a 25 basis point increase on Thursday, up from 25% a week earlier.
Technically, FXStreet noted EUR/USD trades near the bottom of a monthly channel around 1.1360, and that a confirmation below this level could bring the 1.1324 floor into focus, while a move back above 1.1420 would be needed to ease bearish pressure.
Latest closeBrent $103.93 ▲3.7%|EUR/USD 1.122 ▼0.3%