Euro Falls Against Dollar Amid Rising US Inflation

Euro Falls Against Dollar Amid Rising US Inflation

euronews.com

Euro Falls Against Dollar Amid Rising US Inflation

The euro weakens against the dollar due to rising US inflation and Republican control of Congress, despite expectations of a Fed rate cut.

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How did the US election results impact the dollar?
Rising US inflation and the Republican victory in the House have strengthened the dollar, pushing up US government bond yields.
What caused the euro to decline against the US dollar?
The euro fell to a one-year low against the US dollar after the release of October's CPI data, which showed a rise in US inflation.
What did the October CPI data reveal about US inflation?
The October CPI showed headline inflation at 2.6% year-over-year and core inflation at 3.6% year-over-year, suggesting persistent inflationary pressure in the US.
What is the market's expectation regarding the Fed's future actions?
Despite expectations of another rate cut by the Fed in December, the resilient job market and firm inflation are supporting a stronger dollar.
Why is the euro expected to remain weak against other major currencies?
The euro's weakness is expected to continue due to a gloomy economic outlook in Europe and potential trade wars, with few fundamental factors supporting a stronger euro.