The EUR/USD pair has reached an eight-month low, with the pair trading at 1.0505, near the lows of the month after reaching a daily high of 1.0574. The Eurozone’s M3 supply shrinkage, reflected by broader economic strains, has weighed on the EUR/USD.
The Euro is extending its losses versus the US dollar, reaching an eight-month low at around 1.0488. The US Department of Commerce reported an improvement in consumer spending in August, but transportation equipment fell -0.2%, weighed by fewer orders on civilian aircraft.
The strike of United Auto Workers versus GM, Stellantis, and Ford could also impact the economic outlook and orders and shipments in September. European Central Bank officials remain hawkish, but data suggests a possible stagflation scenario. Minnesota Fed President Neil Kashkari remains hawkish on the US front, foreseeing one more rate hike and opening the door for more if needed.
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Tags ECB eur/usd Eurozone FED Ford GM hawkish stance labour strike stagflation United Auto
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