Dollar Gains Ground as Fed Tightening Expectations Rise. Forecast as of 11.09.26

Could a single inflation report be enough to prompt the Fed to raise interest rates? The market appears to think so, largely overlooking Christine Lagarde's hawkish rhetoric and the decline in US Treasury yields. Let's examine the key factors driving the EUR/USD outlook and develop a trading plan.Major Takeaways The ECB raised its rate to 2.5% but gave no signals. US producer prices rose to 5.4%. The probability of a Fed rate hike in September has risen to 72%. High inflation is a reason to incr