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Euro falls for second day as risk aversion lifts USD

EUR/USD trades around 1.1580 after failing near 1.1620, as Fed tightening odds rise and geopolitical tensions push investors toward the dollar.

Reported · Written up by our desk · Major Pairs

The euro is extending losses against the US dollar for a second straight day, with EUR/USD down as risk aversion grows and bets on additional Federal Reserve tightening continue to support the greenback, according to FXStreet.

FXStreet reports that EUR/USD is trading near 1.1580 after a rejection around the 1.1620 area on Tuesday, as Middle East tensions raise concerns about the outlook for a negotiated end to the conflict.

The outlet links the backdrop to reciprocal attacks involving the US and Iran and notes that energy prices have firmed, with Brent trading around $94.00, nearly 7% higher on the week.

FXStreet adds that US economic releases were mixed, including a slowdown in the ISM Manufacturing PMI in August, while FedWatch pricing shows a 68% chance of a September quarter-point rate hike, versus 36% the prior week.

Latest closeBrent $95.25 ▲5.3%|EUR/USD 1.160 ▼0.2%

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