Fed Rate-Rise Speculation Offsets Lower Oil Prices for Euro

Dow Jones07-28 16:45

0845 GMT - The euro is failing to find much support from the pullback in oil prices as markets position for the possibility of the Federal Reserve raising interest rates on Wednesday, ING's Chris Turner says in a note. Opinions in favor of lifting rates cite the benefits of an early move to boost the Fed's inflation-fighting credentials and lessen the need for subsequent tightening, he says. "The Fed's lack of communication has certainly created fertile ground for such speculation." The market prices a 34% chance of a rate rise Wednesday, LSEG data show. The euro trades steady at $1.1370 after reaching a one-month low of $1.1360 earlier. ING sees scope it to drop to $1.1325 if it breaks below $1.1360. (renae.dyer@wsj.com)

(END) Dow Jones Newswires

July 28, 2026 04:45 ET (08:45 GMT)

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