Euro Lifted By Fall in U.S. Rate Rise Expectations -- Market Talk
Dow Jones2026/08/17 07:370737 GMT - The euro rises to a two-month high against the dollar, driven by a favorable shift in interest-rate expectations. The market has scaled back expectations for the Federal Reserve to raise interest rates this year whereas it is pricing an 83% chance that the European Central Bank will deliver another rate rise in September, LSEG data show. A further drop in short-dated U.S. rates is helping the euro reconnect with its short-term fair value in the $1.160-$1.1650 area, ING's Chris Turner says in a note. "Even though the euro is far from a high-yielder, it seems international investors like the eurozone as a diversification play against the U.S. AI boom." The euro rises to as high as $1.1611. (renae.dyer@wsj.com)
(END) Dow Jones Newswires
August 17, 2026 03:37 ET (07:37 GMT)
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
BUZZ-IIFL Finance rallies to a two-month high, boosted by Blackstone deal
The “outlier” in the AI capital expenditure frenzy: Apple (AAPL.US) keeps spending flat, accounting for less than 5% of sales
Apple continues to stand out among major tech peers, largely avoiding the aggressive wave of capital expenditure associated with artificial intelligence (AI) infrastructure.
Youth Employment Declines for 48 Consecutive Months: Behind the Semiconductor Boom, Young South Koreans Are Being Left Behind by the Times
In South Korea, the unemployment rate in October fell to a three-year low of 2.5%. However, the number of employed people decreased by 50,000, youth employment has declined for 48 consecutive months, and domestic demand remains weak.
Crypto prices
More
