ECB President Lagarde Backs Measured Policy Path, Pushing EUR/USD to 1.1364

The euro weakened against the US dollar to intraday lows near 1.1364 after European Central Bank President Christine Lagarde advocated for a "measured response" and a "middle path" on monetary policy following a recent 25 basis point rate hike. Lagarde told the European Parliament that rising long-term market yields are already tightening financial conditions and noted no evidence of energy prices becoming deeply embedded into wages. August Eurozone headline inflation rose to 3.2%, driven by a jump in energy inflation to 14.3%, while core inflation softened to 2.4%.