Euro tests two-week lows as risk aversion, Fed tightening bets buoy the US Dollar

Euro tests two-week lows as risk aversion, Fed tightening bets buoy the US Dollar

Source: EODHD - https://www.fxstreet.com/news/euro-tests-two-week-lows-as-risk-aversion-fed-tightening-bets-buoy-the-us-dollar-202609020921
Published: Sep 02, 2026 5:21 AM

The Euro (EUR) is trading lower against the US Dollar (USD) for the second consecutive day on Wednesday, weighed by risk aversion amid growing tensions in the Middle East, while rising bets of Federal Reserve (Fed) interest rate hikes support speculative demand for the US Dollar.

Market context: This update is relevant to EUR traders, with EURUSD as the primary instrument to monitor for follow-through, trend continuation, or headline volatility.