Euro Takes a Knock as ECB Rate Pause Expectation Grows, Dollar Firm Before Powell

U.S. Dollar and Euro banknotes are seen in this illustration taken on July 17, 2022. Dado Ruvic/Illustration/Reuters

LONDON—The euro fell to its lowest level since mid-June on Friday, knocked down by growing expectations that the European Central Bank could soon pause rate hikes while the dollar was broadly robust ahead of a speech by Federal Reserve Chair Jerome Powell.

The euro fell to a fresh low, hitting its lowest since mid-June at around $1.0766. It was last down 0.3 percent on the day.