{
  "id": 9241941,
  "title": "Euro weakens below 1.1450 on hawkish Fed signals, German political risks",
  "url": "https://urgent.news/2026/09/23/euro-weakens-below-1-1450-on-hawkish-fed-signals-german-political",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-09-23T01:21:29.000Z",
  "source": {
    "name": "FXStreet",
    "slug": "fxstreet",
    "url": "https://www.fxstreet.com/news/euro-weakens-below-11450-on-hawkish-fed-signals-german-political-risks-202609230121"
  },
  "original_language": "en",
  "account": "The EUR/USD exchange rate slipped to around 1.1445 early on Wednesday, as the US Dollar strengthened due to the US Federal Reserve's hawkish stance and the expectation of additional interest rate hikes. Traders anticipated preliminary Purchasing Managers' Index (PMI) data for Germany, the Eurozone and the United States, which would be released later in the day. Susan Collins, President of the Boston Fed, expressed support for the Fed's decision to raise interest rates, citing the possibility of future inflation staying above the 2% target. On Monday, St. Louis Fed President Alberto Musalem suggested further rate increases might be needed to achieve the Fed's inflation goal. The Fed had recently increased its interest rate by 25 basis points to the 3.75%-4.00% range, with more hikes penciled in before the end of the year. The likelihood of a US rate hike in December rose to nearly 89.2%, according to the CME FedWatch Tool. Political risks in Germany could also impact the Eurozone sentiment and the shared currency. The far-right Alternative for Germany (AfD) party had recently secured significant victories, resulting in Chancellor Friedrich Merz's conservative coalition's worst regional election defeat since the end of World War II, leaving the government in a precarious position. Scotiabank analysts noted that falling oil prices were beneficial for the Euro, given the Eurozone's dependency on energy imports. They also highlighted that yield differentials remained favorable for the single currency, with the 2-year Germany-US yield spread only slightly above 1.15%. Fed's Collins conveyed a more hawkish perspective, with her FXS Speechtracker score surpassing the 6.6/10 historical average, indicating a stronger commitment to tightening. This combination of heightened inflation concerns and confidence in the labor market's resilience favored the Dollar and put pressure on risk-sensitive currencies like the Euro. The FXS Fed Sentiment Index climbed to 150.49, confirming a predominantly hawkish tone in Fed communication. With the index well above the neutral 100 mark and the latest speech exceeding the established baseline, the data suggested persistent upward pressure on US yields and the Dollar, as markets anticipated a prolonged period of restrictive monetary policy. EUR/USD remained bearish in the short term, trading below both the 100-day moving average and the Bollinger Bands' 20-day simple moving average center line. The pair was near the lower edge of its recent volatility range, with the Relative Strength Index (14) flirting with oversold territory. On the upside, immediate resistance was at the 100-day MA at 1.1540, followed by the Bollinger 20-day SMA center band at 1.1562. The upper Bollinger band stood at 1.1700, posing a more distant hurdle. Downside support was identified at the lower Bollinger band around 1.1425, with a sustained breach potentially leading to further downside momentum if not halted. Technical analysis was assisted by artificial intelligence.",
  "summary": "The EUR/USD pair loses ground to near 1.1445 during the early Asian trading hours on Wednesday. The US Dollar (USD) strengthens against the Euro (EUR) on the hawkish stance of the US Federal Reserve (Fed) and the prospect of further interest rate hikes.",
  "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."
}