The euro fell in the European market on Wednesday against a basket of global currencies, trading near a two-week low against the US dollar, as renewed buying of the US currency as the best available investment took hold, amid easing concerns over Federal Reserve stability.

With current odds low for the European Central Bank to cut interest rates in Septemberfor the second consecutive meetinginvestors later this week await key August inflation data from Germany and Spain.

Price Overview

The euro fell against the dollar by 0.25% to 1.1612 dollars, from the opening level of 1.1642 dollars, recording a high of 1.1647 dollars.

The euro ended Tuesday up 0.1% against the dollar, its second gain in the past three days, as part of a recovery from a two-week low of 1.1583 dollars.

US Dollar

The dollar index rose nearly 0.3% on Wednesday, resuming gains after a temporary pause yesterday, reflecting the US currencys rise against a basket of major and minor counterparts.

After the shock caused by US President Donald Trumps attempt to dismiss Lisa Cook from her position on the Federal Reserve Board, markets were unsettled over the future of the central banks independence.

However, those concerns quickly eased as it became clear the matter was likely to turn into a lengthy legal dispute, giving markets some reassurance.

European Interest Rates

Five sources told Reuters that the European Central Bank is expected to keep interest rates unchanged next month, though discussions on further cuts could resume in the autumn if the eurozone economy weakens.

ECB President Christine Lagarde said on Saturday at Jackson Hole that the tightening policies adopted in 2022 and 2023 had not led to recession or sharp increases in unemployment, as had historically been the case.

Money market pricing of a 25-basis-point ECB rate cut in September is currently steady below 30%.

To reprice these expectations, investors later this week await key inflation data from Germany and Spain for August, ahead of full eurozone inflation data early next week.