{
  "id": 9214834,
  "title": "The Euro drops to its lowest since July as the Dollar keeps climbing",
  "url": "https://urgent.news/2026/09/22/the-euro-drops-to-its-lowest-since-july-as-the-dollar-keeps-climbing",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-09-22T22:19:16.000Z",
  "source": {
    "name": "FXStreet",
    "slug": "fxstreet",
    "url": "https://www.fxstreet.com/news/the-euro-drops-to-its-lowest-since-july-as-the-dollar-keeps-climbing-202609222219"
  },
  "original_language": "en",
  "account": "The Euro experienced a substantial drop to its lowest level since late July on Tuesday, as the US Dollar continued its upward trajectory. The EUR/USD exchange rate plummeted below 1.1450 from a level of around 1.1700 earlier in August, marking a significant loss in recent value. This decline was primarily driven by the US Dollar's gains, fueled by rising expectations of higher interest rates in the US. The European Central Bank (ECB) recently increased its deposit rate to 2.50% on September 10, the second hike since the escalation of energy prices due to the war. Market forecasts now anticipate three or four additional rate hikes over the next year, which strengthens the Dollar's position and weakens the Euro's appeal.\n\nECB President Lagarde emphasized that the ECB's rate decisions are not solely influenced by energy price fluctuations and that the response is carefully considered. However, the two most prominent individuals within the institution that would enforce these increases have both expressed concerns that the market's expectations may be unrealistic. The Euro's primary support now lies in the anticipated rate hikes, with two senior officials at the ECB indicating that the market is expecting too much.\n\nThe European Commission's latest consumer confidence survey for September dropped to -16.5, which is worse than the forecasted -16 and has deteriorated from -15.5 in August. This decline reflects households' reduced spending due to soaring energy costs. As the Eurozone relies heavily on foreign imports for oil and gas, any improvement in energy prices, such as Iran's conditional offer to facilitate tankers through the Hormuz Strait, could alleviate these expenses and reduce the need for further ECB rate increases.\n\nThe Eurozone's economic health is under scrutiny as the next set of flash surveys from the Hamburg Commercial Bank (HCOB) are released on Wednesday. The composite Purchasing Managers Index (PMI) is expected to show a growth rate of 51.5, slightly lower than the 52 recorded in August. A reading of 51.5 still indicates growth but at a slower pace. Two consecutive soft readings would provide the ECB with a reason to issue fewer rate hikes than anticipated, a scenario that would harm the Euro's value.\n\nWith the German Ifo business survey for September expected on Thursday, a weak performance could significantly impact the ECB's case for additional rate hikes. Germany, being the largest economy within the Eurozone, plays a crucial role in shaping the currency's future. Meanwhile, the US Dollar's strength is bolstered by S&P Global's US flash surveys, set to be released on Wednesday at 13:45 GMT, with services forecast at 56, compared to the Eurozone's services at 51.7. This growth gap between the two economies underscores the Fed's ability to continue raising rates in a stronger US economy.",
  "summary": "About 80% of the Euro's August rally is gone. EUR/USD climbed from near 1.1350 at the end of July to just above 1.1700 in the second half of August, and on Tuesday it dipped under 1.1450 to its lowest since late July before recovering to trade near that level.",
  "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."
}