The EUR/USD pair reached a 13-month high, surpassing 1.1150 and aiming for 1.1200 as the US Dollar faces selling pressure. Investors are eagerly awaiting further indications of a rate cut in September, with expectations mounting for a possible double cut by the Federal Reserve (Fed).
Recent Fed Meeting Minutes revealed discussions about delivering rate cuts as early as July, solidifying the likelihood of at least a quarter-point cut on September 18. Market participants are increasingly betting on a 50 bps trim during the FOMC meeting, with a 40% probability according to rate traders.
Key PMI figures from Europe and the US are on the horizon, alongside the start of the Jackson Hole Symposium. Eurozone PMIs are expected to remain stable, while US PMIs may show slight declines. The market will closely monitor these events for potential market movements.
EUR/USD Price Forecast
The EUR/USD pair has been on a bullish streak, closing in the green for most of the past eight trading days. With strong momentum, the pair is eyeing the 1.1200 level, supported by a high-low pattern from previous lows near 1.0600. The daily chart indicates a positive outlook for the pair.
Euro FAQs
The Euro is the currency for 20 EU countries and is the second most traded currency globally. The ECB in Frankfurt manages monetary policy for the Eurozone, influencing interest rates and inflation. Economic data and trade balance also impact the Euro’s strength in the forex market.