Euro Climbs to 2-Month High

2026-08-17 09:33 By Agna Gabriel 1 min. read

The euro strengthened to around $1.160, reaching its highest level in two months as changing interest-rate expectations continued to support the single currency.

Markets have reduced bets on a Federal Reserve rate increase this year, with the latest economic data reinforcing expectations that the Fed will keep rates unchanged at its next meeting.

By contrast, investors are pricing in roughly an 84% probability of a 25-basis-point European Central Bank rate hike in September, highlighting the widening policy expectations between the two central banks.

Elevated energy prices remain a concern for the Euro Area, particularly as tensions in the Middle East show little sign of easing.

Iran urged the US to accept defeat, while President Donald Trump warned that Americans should prepare for persistently high fuel prices as the conflict continues.

Looking ahead, investors will focus on upcoming Eurozone PMI data for further clues on economic momentum and the ECB’s policy outlook.



News Stream
Euro Climbs to 2-Month High
The euro strengthened to around $1.160, reaching its highest level in two months as changing interest-rate expectations continued to support the single currency. Markets have reduced bets on a Federal Reserve rate increase this year, with the latest economic data reinforcing expectations that the Fed will keep rates unchanged at its next meeting. By contrast, investors are pricing in roughly an 84% probability of a 25-basis-point European Central Bank rate hike in September, highlighting the widening policy expectations between the two central banks. Elevated energy prices remain a concern for the Euro Area, particularly as tensions in the Middle East show little sign of easing. Iran urged the US to accept defeat, while President Donald Trump warned that Americans should prepare for persistently high fuel prices as the conflict continues. Looking ahead, investors will focus on upcoming Eurozone PMI data for further clues on economic momentum and the ECB’s policy outlook.
2026-08-17
Euro Hits 8-week High
EURUSD increased to 1.16, the highest since June 2026. Over the past 4 weeks, Euro US Dollar gained 1.01%, and in the last 12 months, it decreased 1.04%.
2026-08-14
Euro Near 2-Month Highs
The euro has been trading around $1.15 in August, near two-month highs, as traders navigate shifting developments in the Middle East and conflicting signals over the prospects of a deal between the US and Iran, while also assessing the resulting rise in oil prices and its impact on inflation. In Europe, market-based measures of inflation expectations, reflected in swaps for the Euro Area over the next year, are around 2.4%, above the ECB’s 2% target. Eurozone inflation edged up to 2.9% in July. Meanwhile, the Euro Area economic outlook has improved, with recent resilience prompting analysts to become more optimistic about growth. The Eurozone economy expanded 0.4% in Q2, the strongest pace since early 2025 and growth is projected to moderate in the near term before gradually gaining momentum. As a result, investors expect the ECB to deliver another 25bps rate hike in September.
2026-08-12