EURUSD fell around 0.5% in early Monday trading, deflated by stronger dollar on growing expectations for Fed rate hike, as well as safe haven buying on the latest warning that pace of AI development must slow to prevent threats to humanity that resulted in strong drop in AI-linked stocks.
The EUR/USD has taken a drop today with the pair coming under pressure from rising energy prices and a rebounding US dollar ahead of the FOMC rate decision, where a hike is all but priced in now. We have a few other central bank meetings and some important data to look forward to as well.
EUR/USD sits near 1.1610, just off a one-month low, as tomorrow's Fed decision looms as the week's true catalyst. The ECB delivered its second hike of the year on September 10, lifting the deposit rate to 2.50% and warning that Middle East-driven inflation pressures will keep price growth well above target for an extended period.