Through most of this year, EUR/USD has been contained by a 1.10 to 1.06 range. During the past few sessions, the currency pair has mostly held levels above 1.10 which raises the question as to whether a new range is being drawn out, Rabobank’s Senior FX Strategist Jane Foley notes.
EUR/USD to trade in the 1.09/1.10 range
“As we argued earlier this month, we see upside risks for EUR/USD as likely to be associated with a softer USD rather than a broadly stronger EUR. These could be related to a weaker than expected US economy which would have implications for Fed rates or a Harris win in the November election.”
“This raises the question as to whether Fed rate cut hopes are still overdone and the risk of near-term dips back below 1.10. The recent softness in the USD may also reflect the view that the interest in ‘Trump trades’ that followed the disastrous TV debate between Biden and Trump in June may have been premature in view of Harris’ relatively better performance in the polls.”
“Although Harris’ policies of a capital gains increase and efforts to limit food price gouging have not gone down well with free market economists, they are aimed squarely at mustering up support among consumers and may boost her position in the polls. On balance, while we can not rule out another dip to the EUR/USD1.08 area in the weeks ahead, we expect EUR/USD to 1.09/1.10 area to become more comfortable for EUR/USD in the coming months.”
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
![EUR/USD keeps range above 1.1000 ahead of ECB policy announcements](https://editorial.fxstreet.com/images/Markets/Currencies/Majors/EURUSD/money-59004818_XtraSmall.jpg)
EUR/USD keeps range above 1.1000 ahead of ECB policy announcements
EUR/USD is gyrating in a tight range above 1.1000 in European trading on Thursday. Traders assess the latest US CPI inflation data, bracing for the ECB policy announcements amid a positive risk sentiment and sustained US Dollar strength.
![GBP/USD holds the bounce near 1.3050, US data in focus](https://editorial.fxstreet.com/images/Markets/Currencies/Majors/GBPUSD/iStock-170160529_XtraSmall.jpg)
GBP/USD holds the bounce near 1.3050, US data in focus
GBP/USD is holding the recovery from three-week lows to trade near 1.3050 in the European session on Thursday. The pair is underpinned by persisting risk flows and a pause in the US CPI-led Dollar rebound. The focus now shifts to the US PPI inflation data.
![Gold keeps knocking at the door of all-time-highs](https://editorial.fxstreet.com/images/Markets/Currencies/Crosses/XAUUSD/gold-bar-and-dollar-bills-42586628_XtraSmall.jpg)
Gold keeps knocking at the door of all-time-highs
Gold continues trading in its established range just below its all-time high on Thursday, as traders await more US inflation data, this time in the form of “factory gate” price inflation, or the PPI for August.
![European Central Bank widely expected to cut interest rates in September](https://editorial.fxstreet.com/images/Macroeconomics/CentralBanks/ECB/ecb-ezb-european-central-bank-frankfurt-68897939_XtraSmall.jpg)
European Central Bank widely expected to cut interest rates in September
The European Central Bank is expected to cut key rates by 25 bps at the September policy meeting. ECB President Christine Lagarde’s presser and updated economic forecasts will be closely scrutinized for fresh policy cues.
![Bitcoin recovers, propelled by risk-on market mood](https://editorial.fxstreet.com/images/Markets/Currencies/Digital%20Currencies/Bitcoin/bitcoins-52602600_XtraSmall.jpg)
Bitcoin recovers, propelled by risk-on market mood
Bitcoin (BTC) price trades slightly higher around $58,000 on Thursday after finding support around the $56,000 level on Wednesday, supported by an improved market mood for risk assets.
![Moneta Markets review 2024: All you need to know](https://editorial.fxstreet.com/images/IT/Testing/Review/FXSBadgeCertifiedBackg_XtraSmall.png)
Moneta Markets review 2024: All you need to know
VERIFIED In this review, the FXStreet team provides an independent and thorough analysis based on direct testing and real experiences with Moneta Markets – an excellent broker for novice to intermediate forex traders who want to broaden their knowledge base.