Published by Mark Smith-HalvorsenThe US dollar has dropped against the euro in foreign exchange trading as speculation grows that the Federal Reserve will fall behind the European Central Bank in raising interest rates.New figures are expected to show further increases in inflation across the euro area, Bloomberg reports. Economists surveyed by the news provider suggested that consumer price inflation in the euro area is expected to have reached 1.3 per cent.The news provider notes that the expected inflation increase helped support the euro against a number of its trading partners, reversing earlier losses.The equivalent inflation figure in the US is expected to have increased by 0.5 per cent, separate Bloomberg research shows.Earlier this month, the European Central Bank became the first of the world's major central banks to push up its core interest rate.Both the US and the UK have so far held off on raising interest rates, citing the view that current inflation hikes are short-term and transitory.For more information on foreign exchange treasury services and risk management, visit our Corporate FX site