Bearish
EUR/USD drops to 1.1380 amid widening ECB-Fed rate gap
The EUR/USD pair declined to 1.1380, its lowest level since July 28, 2026, as the European Central Bank's deposit rate of 2.50% lags behind the Federal Reserve's 3.75%-4.00% range. This 125–150 basis point difference continues to weigh on the euro. Despite a strong Eurozone PMI of 53.1, the euro's weakness persists.
Key points
- EUR/USD falls to 1.1380, lowest since July 28, 2026.
- ECB's 2.50% deposit rate trails Fed's 3.75%-4.00% range by 125–150 basis points.
- Eurozone PMI at 53.1, strongest since April 2023, but insufficient to support the euro.
Sources
AI-generated from public news sources. Not financial advice.
