11.09.202613:16:23UTC+00Euro Holds at Over One-Week Low

The euro hovered around $1.16, near its weakest level in over a week, as the dollar remained buoyed by rising expectations that the Federal Reserve will raise interest rates next week after stronger‑than‑expected US core inflation data. In Europe, the ECB lifted its key rate by 25 basis points on Thursday and warned that inflation is likely to stay well above its 2% target for an extended period. ECB President Christine Lagarde described the move as a “no‑brainer” and cautioned that the return to target—currently projected for the end of 2027—could be pushed back even further. With the inflation outlook having deteriorated markedly, additional tightening is now widely seen as likely, according to people familiar with the discussions, with another increase potentially coming as early as October. Money markets are pricing in three more ECB rate hikes by March of next year, followed by a fourth by June.