The Euro falls for a third day against the USD as markets price a 71% chance of a Fed rate increase in September.
The Euro declined 0.25% to 1.1350 against the US Dollar in European trading, extending a three-day losing streak. The move follows heightened expectations of a Federal Reserve rate hike, with the CME FedWatch tool showing a 71% probability for September.
The US Dollar Index rose 0.16% to 101.55, supported by a hawkish shift in the Fed’s dot plot. Nine of 19 policymakers now project a rate increase this year, up from zero in March. Meanwhile, ECB officials maintain inflation will stay above the 2% target despite geopolitical easing.
The Dollar strengthened most against the New Zealand Dollar, reflecting broad-based demand amid Fed policy speculation.