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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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Tina TengMichael MccarthyTrump
- 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.