Euro declines below 1.1400 on hawkish Fed stance, ongoing Middle East tensions
The EUR/USD pair edges lower to around 1.1380 during the early Asian session on Monday, pressured by hawkish signals from the Federal Reserve (Fed) and escalating Middle East tensions.
The Euro slipped below 1.1400 against the US Dollar on Monday, driven by hawkish comments from the Federal Reserve and growing Middle East tensions. Traders anticipate key economic data from Germany, including Retail Sales and Consumer Price Index (CPI) inflation reports, for further guidance. Many Federal Reserve officials have recently expressed a cautious tone, with Cleveland Fed President Beth Hammack expressing concerns over persistently high inflation risks.
Philadelphia Fed President Anna Paulson indicated that "some modest further tightening may be warranted." The odds of a Fed rate hike in October now stand at nearly 65.9%, up from 57.6% a week earlier and 9.4% a month earlier. The Middle East situation has also contributed to the Euro's decline, as rising tensions may boost safe-haven flows, supporting the US Dollar.
Written by urgent.news from FXStreet's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
