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EUR/USD slides near 1.1360 as US yields and hawkish Fed views persist
FXStreet said markets are pricing nearly a 70.3% chance of a quarter-point Fed hike at the October meeting, while the euro is at its lowest since July 28 versus the dollar.
EUR/USD was trading in negative territory around 1.1360 in the early European session Tuesday, with the euro weakening against the US dollar, according to FXStreet.
The outlet attributed the move to surging US Treasury bond yields and hawkish signals from Federal Reserve officials, with traders looking ahead to additional Fed remarks later Tuesday.
FXStreet noted expectations for further Fed rate hikes after policymakers said additional increases may be needed to curb unacceptably high inflation, citing comments from Cleveland Fed President Beth Hammack and Fed Governor Michael Barr.
The article also said CME’s FedWatch tool indicates markets are pricing in nearly a 70.3% probability of a quarter-point rate hike in October, and analysts at Societe Generale linked persistent dollar strength to lower EUR/USD projections this year.
Latest closeEUR/USD 1.137 ▼0.1%