Euro Plummets to One-Year Low Amid Rising Dollar and Inflation Concerns

The euro has fallen to a one-year low against the US dollar following the release of US inflation data, which showed a rise in both headline and core inflation. This decline is attributed to firming US inflation, Trump's election victory, and rising US bond yields, which have strengthened the dollar. Analysts predict continued pressure on the euro due to economic and political uncertainties in Europe, and the potential for a trade war with the US. Despite expectations of a modest Fed rate cut in December, the strong US economy and persistent inflation are likely to keep the dollar strong.