The euro finished the week below $1.14, its weakest level in two months, as the U.S. dollar benefited from expectations that the Federal Reserve will raise interest rates further this year. Hawkish comments from Fed officials, robust economic growth and a resilient labor market strengthened the case for tighter U.S. monetary policy. In Europe, the U.S.-Iran conflict and recent energy-price moves continued to fuel concerns about renewed inflation. Money markets are pricing in roughly 100 basis points of rate increases by the end of October 2027. German consumer sentiment also weakened more sharply than expected heading into October, with higher energy prices reducing households’ income expectations.