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Euro slips below 1.12 against dollar as Fed hawkishness weighs
EUR/USD was last at 1.1155, down 0.4%, while WTI rose over 1.6% to $93.17 amid tensions tied to the Russia-Ukraine war and the Strait of Hormuz.
The euro extended its slide versus the US dollar on Monday, breaking below the psychological 1.1200 level as investors leaned on hawkish remarks from a Fed policymaker and turned more cautious amid geopolitical worries, including the US-Iran conflict and Russia’s invasion of Ukraine, according to FXStreet.
FXStreet said EUR/USD traded around 1.1155, down 0.4%. The outlet also noted trading was subdued because the Columbus Day holiday kept cash markets closed.
The newsletter pointed to over-the-weekend news that US President Trump announced a ceasefire on Russia-Ukraine energy facilities, which investors initially cheered, while Ukraine’s President Zelenskyy warned hostilities would continue if Russia attacks infrastructure.
FXStreet added that WTI ended Monday up more than 1.6% at $93.17 as tensions in the Hormuz stayed elevated, even as Iran said the US agreed, in some form, to Tehran’s conditions to reopen the Strait.
Attention also shifted to Cleveland Fed President Beth Hammack, who commented that higher rates are needed as inflation broadens, with FXStreet stating she has one of the highest projections for the neutral rate within the FOMC.
Latest closeWTI crude $91.10 ▲3.2%|EUR/USD 1.122 ▼0.3%