EURO SLIDES TO FRESH LOWS AGAINST US DOLLAR AND BRITISH POUND DESPITE ECB RATE HIKES

What happened: The euro fell to its weakest level against the US dollar since mid-May 2025 and against the British pound since early June 2025, despite two ECB rate hikes this year. Key numbers: Euro around $1.111 Wednesday, $1.121 Thursday, down over 5% since late August. Why it matters: An energy shock, France's debt crisis and a stronger US dollar are outweighing ECB tightening. Traders bet the ECB holds on 29 October and hikes in December, while US inflation data doubled Fed hike bets for 28 October.

Euro weakness persists despite ECB rate hikes, signaling market skepticism.

Euro weakness persists despite ECB rate hikes, signaling market skepticism. — impact context not separately stored; see What changed.