The euro fell in the European market on Monday against a basket of global currencies, deepening its losses for the fourth consecutive day against the US dollar, recording its lowest level in nearly two weeks, amid negative pressure on the single currency, especially with focus on buying the US currency as the best alternative investment.

After the European Central Banks latest hawkish meeting, the chances of cutting European interest rates before the end of this year declined, and to confirm those expectations investors are awaiting further evidence on the path of monetary easing in the eurozone.

Price Overview

Todays euro exchange rate: The euro fell against the dollar by 0.15% to $1.1726, its lowest since September 15, from an opening level of $1.1744, with a high of $1.1748.

The euro ended Fridays session down 0.35% against the dollar, marking its third daily loss in a row, amid concerns over financial stability in Europe.

US Dollar

The dollar index rose by about 0.2% on Monday, extending gains for the fourth straight session, hitting a two-week high of 97.81 points, reflecting the continued rise of the American currency against a basket of global currencies.

This rise came as traders reassessed near-term expectations after the Federal Reserve cut interest rates last week but signaled that further monetary easing would proceed only gradually.

About 10 Federal Reserve officials, including Chairman Jerome Powell, are scheduled to speak this week, with investors closely monitoring their views on the economy and the independence of the US central bank.

European Interest Rates

In line with expectations, the European Central Bank this month kept key interest rates unchanged at 2.15%, their lowest level since October 2022, marking the second meeting in a row with no change.

The ECB said in its monetary policy statement: inflation is currently approaching the 2% medium-term target, and the Governing Councils assessment of inflation expectations has not changed overall.

Sources: Policymakers at the ECB believe there is no need for further interest rate cuts to achieve 2% inflation, despite new economic forecasts pointing to a decline in rates over the next two years.

Sources: Unless the eurozone faces another major economic shock, borrowing costs are expected to remain at current levels for some time.

Money market pricing for a 25-basis-point ECB rate cut in October fell from 30% to below 10%.

Traders have reduced their bets on ECB monetary easing, indicating the end of this years rate-cutting cycle.

To reprice those odds, investors are awaiting a stream of upcoming European economic data, in addition to monitoring comments from ECB officials.