This comes after the Eurozone inflation data shows that core annual inflation met estimates in August at 5.3% year-on-year and that is slightly softer than the 5.5% year-on-year reading in July. That is seeing traders pare ECB rate hike bets to roughly 30% now and it way down from around 54% earlier at the start of the day.
EUR/USD daily chart
Coincidentally, the shove lower in EUR/USD ties to a rejection at the 100-day moving average (red line) at 1.0924 – at least for now.
The euro’s struggles are keeping the dollar underpinned on the session with GBP/USD now also down to the lows for the day at 1.2685 from around 1.2710 earlier in the session. AUD/USD is also down at the lows for the day at 0.6470 but that just represents a 0.1% drop.