{
  "id": 10818549,
  "title": "Euro softens below 1.1350 on Lagarde's dovish tilt, German Retail Sales data in focus",
  "url": "https://urgent.news/2026/09/30/euro-softens-below-1-1350-on-lagardes-dovish-tilt-german-retail-sales",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-09-30T00:34:22.000Z",
  "source": {
    "name": "FXStreet",
    "slug": "fxstreet",
    "url": "https://www.fxstreet.com/news/euro-softens-below-11350-on-lagardes-dovish-tilt-german-retail-sales-data-in-focus-202609300034"
  },
  "original_language": "en",
  "account": "On Wednesday, the EUR/USD currency pair fell to approximately 1.3335 during early Asian trading hours. The Euro weakened against the US Dollar after European Central Bank President Christine Lagarde signaled a dovish stance. Germany's retail sales data for August is expected later on Wednesday. Lagarde stated on Tuesday that rising bond yields would restrain economic growth and limit the impact of high energy costs on inflation. She added that the central bank should take a \"measured response\" to keep inflation under control, with the effects taking place only after some time. Traders reduced expectations of monetary tightening and now view a less than 40% chance of an ECB rate hike in the October policy meeting, according to Bloomberg. Her comments affirm the belief that if one central bank increases rates in October, it will be the Federal Reserve, not the ECB, according to Francesco Pesole, an FX Strategist at ING. Expectations for more Federal Reserve rate hikes are keeping the US Dollar up. Traders will monitor the release of US jobs data for September on Friday, with economists predicting a 90,000 increase in jobs added in September, while the Unemployment Rate is expected to stay at 4.1%. The Euro \"held up relatively well yesterday\" despite the dovish comments from ECB President Lagarde, which \"favor a widening in the SOFR-ESTR 2yr swap to beyond 155bp.\" The spread is now close to the 163bp maximum width reached in early July, indicating that rate differentials have shifted more in favor of the US. Lagarde seemed to tone down market enthusiasm about an October hike, arguing that \"tight financial conditions are limiting the pass-through of energy costs to the broader economy.\" She also emphasized that the ECB should adopt a \"measured response\" given no evidence of second-round effects, reinforcing the idea of a more cautious policy stance. ING's analysts believe that if one central bank hikes in October, it will be the Fed, not the ECB, and currently price a higher EUR/USD by year-end. The daily chart shows EUR/USD with a bearish near-term bias, holding below the 100-day simple moving average and Bollinger Bands middle SMA. Price is near the lower end of the recent range, with the Bollinger lower band providing the nearest technical floor. The Euro is the currency of the 20 European Union countries in the Eurozone, being the second most heavily traded currency globally after the US Dollar. The European Central Bank, based in Frankfurt, Germany, is responsible for setting interest rates and managing monetary policy in the Eurozone.",
  "summary": "The EUR/USD pair declines to around 1.3335 during the early Asian trading hours on Wednesday. The Euro (EUR) softens against the US Dollar (USD) after European Central Bank (ECB) President Christine Lagarde's dovish tilt. Germany’s August Retail Sales data is due later on Wednesday.",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}