The euro fell in the European market on Wednesday against a basket of global currencies, extending losses for the second consecutive day against the US dollar, moving away from a seven-week high, as correction and profit-taking activity continued, in addition to the rebound of the US currency amid easing concerns over Federal Reserve stability.

Later today, the European Central Bank begins its important monetary policy meeting, where interest rates are expected to remain unchanged for the second consecutive meeting.

Global financial markets are awaiting signals from the ECB on the possibility of resuming the monetary easing cycle during the remainder of this year.

Price Overview

Exchange rate of the euro today: The euro fell against the US dollar by about 0.2% to ($1.1689), from todays opening price at ($1.1708), recording the highest level at ($1.1710).

The euro ended Tuesdays trading down by about 0.5% against the US dollar, its first loss in the last three days, after earlier recording a seven-week high at $1.1780.

US Dollar

The dollar index rose on Wednesday by 0.2%, extending gains for the second consecutive session, as the recovery from a seven-week low continues, reflecting the rebound of the US currency against a basket of global counterparts.

In addition to buying from lower levels, the US dollars rebound comes ahead of the release of key US inflation data, which will provide decisive evidence on the likelihood of US interest rate cuts in September and October.

Later today, producer price data for August will be released, followed by consumer price data on Thursday. Additional hot data would reduce the likelihood of US interest rate cuts.

Concerns over Federal Reserve stability have eased, especially after President Trump was blocked from dismissing Fed Governor Lisa Cook while the lawsuit remains ongoing.

European Central Bank

The European Central Bank meets later today, Wednesday, and tomorrow, Thursday, to study the appropriate monetary policy for recent economic developments in the euro area.

The bank is widely expected to keep European interest rates unchanged at the 2.15% range, the lowest level since October 2022, for the second meeting in a row.

Markets are awaiting further evidence on the timing of the ECBs resumption of monetary easing and interest rate cuts before the end of this year.