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EUR/USD continues its losing streak for the sixth successive session, trading around 1.1030 during the Asian hours on Friday. Lower Eurozone inflation reading raised expectations of a rate cut by the European Central Bank (ECB) in October, which would mark the central bank’s third reduction this year.Earlier this week, the Harmonized Index of Consumer Prices dropped to 1.8% year-over-year in September, falling below the ECB’s 2% target and lowest since April 2021. Markets reflect a 95% probability of a 25 basis point rate cut this month.The risk-sensitive Euro may face challenges as escalating geopolitical tensions in the Middle East impact risk appetite. US President Joe Biden mentioned that the United States is in talks with Israel regarding potential strikes on Iran’s Oil infrastructure.Israeli Prime Minister Benjamin Netanyahu warned that Iran “will pay a heavy price” for Tuesday’s attack, which reportedly involved the launch of at least 180 ballistic missiles at Israel, according to the BBC.The EUR/USD pair depreciates as the US Dollar (USD) receives support from a better-than-expected US ISM Services PMI and ADP Employment Change reports, which challenged dovish expectations for Federal Reserve (Fed) monetary policy.US ISM Services PMI rose to 54.9 in September, from 51.5 in August and exceeding the market forecast of 51.7. The ADP US Employment Change report showed an increase of 143,000 jobs in September, surpassing the forecasted 120,000 jobs.More By This Author:AUD/JPY Inches Lower To Near 100.50 Due To Risk Aversion Sentiment Silver Price Forecast: XAG/USD Depreciates To Near $31.50, Downside Seems Limited AUD/JPY Advances To Near 99.50 Due To Hawkish RBA Stance On Policy Outlook
