FOREX — Euro struggles as investors await US CPI data, Fed speakers

Euro dips against the dollar, hits 16-month low versus sterling Eyes on US CPI data due at 1230 GMT Global finance chiefs in Bangkok for IMF, World Bank meetings (Updates with early US prices) By Sruthi Shankar Oct 14 (Reuters) — The euro struggled to gain traction against the dollar on Wednesday as investors awaited US inflation data and comments from Federal Reserve policymakers for fresh clues on the pace of monetary policy tightening. 1192 and plumbed a fresh 16-month low versus sterling as a rise in oil prices and lingering concerns about France's fiscal health continued to weigh on the single currency. 50, recovering from marginal declines earlier in the session.

Attention is now on the release of US consumer price index data due at 1230 GMT, as well as speeches from Fed officials that could clarify the outlook for interest rates. 4%. "The risk is that US CPI hits 4%, or that the core picks up as well. 1152," said Roberto Mialich, FX strategist at Unicredit.

The dollar had also fallen on Tuesday after comments that were interpreted as dovish from New York Fed President John Williams. "I don't think at this time I have any reason to believe that we would need to do more," Williams told Bloomberg News in an interview, referring to the possibility of further rate hikes in 2027. On Thursday, Fed Vice Chair for Supervision Michelle Bowman also signaled a wait-and-see approach before raising rates again. Traders see a 78% chance that the Fed will leave rates unchanged at its October 27-28 meeting, up from 53% a month ago, while pricing in about 79 basis points of tightening by late 2027, CME Group's FedWatch Tool showed.

00% range last month. Fed official Thomas Barkin is scheduled to speak later in the day. Additionally, the Fed publishes its monthly Beige Book. Euro Troubles A host of global finance chiefs are in Bangkok, where the International Monetary Fund and World Bank are holding annual meetings.

IMF fiscal affairs chief Rodrigo Valdes said the body has "dialed up" the urgency of its call for governments to rein in growing debts, while the IMF's Kristalina Georgieva said the US needs to make fiscal adjustments to put its debt on a more sustainable path. French bonds have been among the worst hit by a recent global selloff, with investors concerned that political jostling ahead of next year's presidential election may hinder efforts to reduce its high deficit.

The ECB's Lagarde said at a CNN event in Bangkok that France should solve its debt woes through fiscal consolidation, damping speculation about whether the central bank might start buying French bonds to contain yields. The euro touched a fresh 17-month low against the dollar this week as soaring French borrowing costs added to inflation concerns driven by higher energy costs. 10," said Unicredit's Mialich. "Going towards the end of the year, we're less bearish.

" The Financial Times reported on Wednesday that British finance minister John Healey is expected to pay for all new giveaways in this month’s budget with higher taxes or spending cuts, rather than more borrowing. The IMF is not recommending that Britain speed up its fiscal consolidation, a senior official of the body said. 326. 46 per dollar.

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