The euro fell below 1.1650 against the US dollar on Thursday for a second consecutive day after stronger-than-expected US Consumer Price Index data supported expectations for continued Federal Reserve tightening. US Treasury yields rose, boosting demand for dollar-denominated assets, while the dollar index climbed to a two-week high. Traders are now focused on the Federal Reserve’s annual Jackson Hole Economic Symposium and Fed Chair Jerome Powell’s keynote speech. The CME FedWatch Tool shows most investors pricing in a 50-basis-point rate hike at the Fed’s September meeting, although a minority now expects a larger 75-basis-point increase. Because EUR/USD is the world’s most traded currency pair, its direction matters for international businesses, investors and consumers. A stronger dollar can make US exports more expensive and raise dollar-priced import costs for European investors. A hawkish signal from the Fed could extend the dollar’s rally, while a more cautious tone may allow the euro to recover. The next major psychological support level for the euro is around 1.1600, with a sustained break potentially opening the way toward 1.1500, a significant low earlier this year.