Euro Hits Two-Week Low Against Dollar on Hawkish Fed Expectations

Key Facts

The EUR/USD pair extended its losses for a second consecutive day, hitting a two-week low during Wednesday's trading session on November 11, 2026. FXStreet reported that the Euro's decline is driven by market expectations of aggressive interest rate hikes by the US Federal Reserve, which has strengthened the Dollar relative to its peers.

The downward pressure on the Euro follows recent US economic data showing persistent inflation, with the Consumer Price Index (CPI) reaching 337.511 on November 10, 2026, exceeding market forecasts. The monthly inflation rate was recorded at 0.4% on the same date, supporting a more hawkish stance from the Fed while regional economic sentiment in Europe remains weak.

Market participants are looking ahead to the release of US Initial Jobless Claims on November 12, 2026, with a forecast of 195,000. Speeches from Federal Reserve officials Hammack, Barr, and Daly are also scheduled for the same day, which may provide further clarity on the future interest rate path.