Euro futures drop to 8-week lows amid hawkish Fed speak.

Euro futures fell to an eight-week low of 1.1409, marking their seventh lower close in the past 10 sessions. Despite Eurozone manufacturing PMI data coming in slightly stronger than expected at 52.7, the euro continued its slide. Germany's PMI missed forecasts, dropping to 53.8, though both regions remain in expansion territory. Meanwhile, the U.S. dollar moved to multi-week highs following hawkish comments from Fed Governor Michael Barr, who signaled further rate hikes are likely needed. According to CME Group's FedWatch Tool, the probability of an October rate hike climbed to over 70%. U.S. composite PMI also reached its highest level since July 2021, reinforcing market expectations and adding further pressure to the euro as Treasury yields increased.