The Euro slides further against the US Dollar to near 1.1350 amid firm hawkish Fed bets.
Fed’s June policy announcement signaled a hawkish shift in officials’ stance towards interest rates.
ECB’s Lane sees inflation remaining well above target into the first half of 2027.
The Euro (EUR) extends its losing streak against the US Dollar (USD) for the third trading day on Wednesday, trading 0.25% lower at around 1.1350 during the European session. The major currency pair faces intense selling pressure as the US Dollar outperforms due to firm speculation that the next monetary policy move by the Federal Reserve (Fed) will be on the upside.
US Dollar Price Today
The table below shows the percentage change of US Dollar (USD) against listed major currencies today. US Dollar was the strongest against the New Zealand Dollar.
USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
USD | 0.25% | 0.09% | 0.06% | 0.12% | 0.24% | 0.39% | 0.25% | |
EUR | -0.25% | -0.16% | -0.18% | -0.13% | -0.01% | 0.11% | -0.00% | |
GBP | -0.09% | 0.16% | -0.02% | 0.02% | 0.14% | 0.26% | 0.15% | |
JPY | -0.06% | 0.18% | 0.02% | 0.05% | 0.17% | 0.28% | 0.16% | |
CAD | -0.12% | 0.13% | -0.02% | -0.05% | 0.12% | 0.22% | 0.13% | |
AUD | -0.24% | 0.01% | -0.14% | -0.17% | -0.12% | 0.11% | -0.02% | |
NZD | -0.39% | -0.11% | -0.26% | -0.28% | -0.22% | -0.11% | -0.11% | |
CHF | -0.25% | 0.00% | -0.15% | -0.16% | -0.13% | 0.02% | 0.11% |
The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the US Dollar from the left column and move along the horizontal line to the Japanese Yen, the percentage change displayed in the box will represent USD (base)/JPY (quote).
During press time, the US Dollar Index (DXY), which gauges the Greenback’s value against six major currencies, trades 0.16% higher to near 101.55.
Fed’s monetary policy announced last week, under new Chairman Kevin Warsh, signaled a hawkish shift in policymakers’ stance amid high inflationary pressures. The Fed’s dot plot showed that nine of the 19 policymakers now believe the central bank needs to raise policy rates this year. This is a sharp turnaround as not a single official supported the view of an interest rate hike in the previous projections report released in March.
According to the CME FedWatch tool, there is an almost 71% chance that the Fed will deliver an interest rate hike in the September policy meeting.
In the Eurozone, European Central Bank (ECB) officials still expect inflationary pressures to remain above the 2% target despite increased peace prospects in the Middle East.
“Uncertainty elevated despite peace prospects and inflation could stay above 2% into the first half of 2027,” ECB Chief Economist Philip Lane said on Tuesday.
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