EUR/USD Extends Weekly Losing Streak as Fed Tightening Bets Lift Dollar, ECB Seen on Knife Edge - VT Markets

EUR/USD logged a third straight weekly decline, sliding back towards the 1.1360 area for the first time since late July. The move has tracked US Dollar strength, with spot down nearly 4 cents from an August peak just above 1.1700, even though the pair managed gains on Friday. Rate expectations have been central: markets have leaned towards further Federal Reserve tightening after the latest FOMC meeting, while higher energy costs have kept Eurozone inflation risks in view and sustained talk of additional European Central Bank moves. Current pricing implies roughly 33 basis points of ECB tightening by year-end, and the October 29 decision is viewed as finely balanced. Positioning has turned less negative.