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25.09.202607:28:18UTC+00Euro Slips to Two-Month Low

The euro closed the week below the $1.14 mark, its weakest level in two months, as the US dollar remained buoyed by mounting expectations of additional Federal Reserve rate hikes this year. A series of hawkish comments from Fed officials, together with economic data signaling solid growth and a resilient labor market, strengthened the outlook for tighter US monetary policy. In Europe, the ongoing US-Iran conflict and recent energy price developments continued to fuel concerns about a resurgence in inflation. Money markets are currently pricing in around 100 basis points of interest rate increases by the end of October 2027. On the data front, German consumer confidence deteriorated more sharply than anticipated heading into October, with rising energy costs eroding households’ income expectations.

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