Euro Hits 17-Month Low Against Dollar Following US Inflation Data

Key Facts

1The EUR/USD pair fell 0.55% to trade around 1.1135, its lowest level since May 2025.

2Hot US inflation data fueled expectations for Federal Reserve interest rate hikes.

The EUR/USD pair fell 0.55% to trade around 1.1135, its lowest level since May 2025. FXStreet reported that hot US inflation data fueled expectations for Federal Reserve interest rate hikes, driving the Euro to a new multi-month low.

The stronger-than-anticipated US inflation figures have increased market bets on further monetary tightening by the Federal Reserve under Chair Kevin Warsh. This extension of the Euro's decline marks a significant technical milestone, as the currency pair continues a nine-day downward trend against the strengthening US Dollar.