Traders are abandoning the euro at pace as speculation grows the European Central Bank will struggle to tighten monetary policy further, even with inflation running far above target.

Data this week showed consumer-price growth re-accelerated in Spain and France in August, but the market is betting the ECB’s cycle of interest-rate hikes is as good as over. After a string of poor economic figures and comments from ECB member Isabel Schnabel on dire outlook, the odds of a pause at the next meeting now hang in the balance.

Source: Bloomberg