The euro continued losses below the $1 parity level, holding near its lowest level since 2002 after Russian President Vladimir Putin declared a partial military mobilization in Russia, which the West views as an escalation. On the monetary policy front, all eyes are on the US Federal Reserve’s statement later today, with Fed policymakers expected to deliver a 75 basis point rate hike for the third time in a row, widening the interest rate differential with the Eurozone. Meanwhile, ECB President Christine Lagarde indicated in a speech Tuesday that policymakers in the Eurozone will continue to hike interest rates over the next few sessions to combat increasing inflation, even if the actions slow economic development. The ECB raised interest rates by an unprecedented 75 basis points in September, following a 50 basis point increase in July, and is anticipated to raise rates by between 50 and 75 basis points in October.
