EUR/USD

The EUR/USD pair drifts lower to around 1.1325 during the early Asian trading hours on Thursday. The US Dollar (USD) strengthens against the Euro (EUR) amid an extended rise in US Treasury yields. The US weekly Initial Jobless Claims report and the Fedspeak will be the highlights later in the day.

Germany, France, Italy and Spain all reported September inflation above forecast, which should have lifted bets on another European Central Bank (ECB) hike and the Euro with them. EUR/USD closed lower instead, its second straight close under 1.1350.

The US Dollar (USD) has traded with marginal gains, coming under pressure following daily tops near 101.50 as investors have evaluated the softer-than-expected PCE data in August while trimming some bets on extra tightening by the Federal Reserve in the following  months.

EUR/USD remains on the defensive on Wednesday as a broadly stronger US Dollar (USD) weighs on the pair, leaving the Euro on track for a loss of more than 2% in September. At the time of writing, EUR/USD trades around 1.1337, close to Tuesday’s low of 1.1312, its weakest level since May 2025.

TD Securities' Macro Research team expects the European Central Bank (ECB) to continue a measured tightening cycle, delivering a final 25bp hike in December and taking the deposit rate to 2.75%, which they see as mildly restrictive.

EUR/USD holds modest gains on Wednesday as traders assess the latest economic data from both sides of the Atlantic. At the time of writing, the pair trades around 1.1363, up 0.20% on the day, after touching 1.1312 on Tuesday, its lowest level since May 2025.