Home›Forex›Major Pairs›Euro falls to monthly low near 1.1362 against the US d…

Euro falls to monthly low near 1.1362 against the US dollar

The dollar was supported by caution ahead of the Fed, which is expected to keep rates at 3.5% to 3.75%, with the market also looking to upcoming Eurozone and German inflation prints.

Reported · Written up by our desk · Major Pairs

The euro slipped to a monthly low around 1.1362 against the US dollar during early European trade on Tuesday, as the greenback extended gains on pre-Fed caution, FXStreet said. At press time, the US Dollar Index was marginally higher and near its monthly high of roughly 101.59.

Ahead of the Federal Reserve’s policy announcement on Wednesday, expectations are that the Fed will leave interest rates unchanged in the 3.5% to 3.75% range. CME FedWatch showed a 62% chance of no change, and an 80.8% chance of an interest rate hike at the September meeting, according to the report.

Investors will look closely at the Fed’s policy statement and Chairman Kevin Warsh’s press conference for cues on the inflation and economic outlook, the outlet added. It also noted that the Fed is unlikely to provide additional guidance on the policy outlook, citing Warsh’s previous comments on forward guidance.

On the Eurozone side, the report said markets are awaiting German and Eurozone preliminary HICP inflation data for July on Thursday and Friday. It added that these inflation readings could influence European Central Bank rate expectations, after Peter Kazimir, an ECB Governing Council member and Slovakia’s central bank governor, said at least one rate hike would be needed to contain elevated inflation pressures.

Latest closeDollar index 101.51 ▲0.0%

More like this

Sources