This data may provide insight into the direction of interest rates.
Euro at Seven-Month High Against Dollar
The euro hovered near a seven-month high against the dollar as traders anticipate the U.S. Federal Reserve will not have to increase rates as quickly or as much as previously thought to combat inflation. Analyst Isabella Rosenberg of Goldman Sachs suggested the lack of inflows to the euro may be due to natural gas supply constraints.
Dollar Loses Ground Against Euro
The dollar has dropped nearly 12% against the euro since reaching a 20-year peak in September, as data shows the Federal Reserve's interest rate hikes are slowing the economy and decreasing inflation. Fed Chair Jerome Powell did not give any policy hints during a recent panel discussion, leaving investors to focus on U.S. CPI data due on Thursday. Futures pricing indicates a 3/4 chance of a quarter-point hike next month.