The U.S. Dollar weakened against the Euro after hawkish comments from ECB President Christine Lagarde, who signaled the end of disinflation in the euro-zone and highlighted rising inflationary pressures. In the U.S., August CPI data showed higher-than-expected inflation, increasing the likelihood of Federal Reserve rate cuts, with some predicting up to 75 basis points by year-end. Meanwhile, the Euro gained strength as Lagarde suggested limited room for rate cuts in 2025, though her cautious tone tempered optimism. The Mexican Peso struggled due to poor industrial production data and new tariffs on Asian imports, reflecting Mexico’s alignment with U.S. trade policies. Markets now await tomorrow’s University of Michigan Consumer Sentiment report for further economic insights.
