The EUR/USD pair surged to 1.1300 for the first time in over a year on Friday as the US Dollar weakened across the board. Market sentiment is bullish after Federal Reserve (Fed) officials hinted at potential interest rate cuts.
Fed Signals Rate Cuts at Jackson Hole
During the Jackson Hole Economic Symposium, Fed Chairman Jerome Powell indicated that the central bank is prepared to lower interest rates. The CME’s FedWatch Tool shows a high probability of a double rate cut in September.
Upcoming EU and US Inflation Data
Next week, investors will be watching key inflation data from the EU and US. Inflation figures are crucial for central bank policy decisions and can impact currency values.
EUR/USD Price Forecast
The EUR/USD pair reached a 13-month high above 1.1300, showing strong bullish momentum. However, a break above this level is needed to sustain the upward trend. Traders should be cautious of potential pullbacks.
Euro FAQs
The Euro is the currency for 20 European Union countries and is the second most traded currency globally. The European Central Bank (ECB) manages monetary policy and aims to maintain price stability. Economic indicators, such as inflation and GDP, influence the value of the Euro.