Through most of this year, EUR/USD has been contained by a 1.10 to 1.06 range, Rabobank’s Senior FX Strategist Jane Foley notes.
EUR/USD set to trade at 1.12 on a 3-month scale
“This month’s break higher and the advent of a new policy cycle for the Fed suggests that a new range is in the process of being drawn out. The forthcoming releases of US August labour data and the next round of US CPI inflation numbers suggest scope for volatility in the US Dollar (USD) crosses near-term as the market finetunes its expectations for the size of the Fed policy decision in September.”
“We see scope for pullbacks potentially to EUR/USD1.10 if key US data in early September prints on the firm side of market forecasts. That said, on the back of Rabo’s revised view that four consecutive Fed rate cuts may be on the cards, we have revised up our 3- and 6-month EUR/USD forecasts to 1.12 and 1.11 respectively from 1.09.”
We have left our 9- and 12-month EUR/USD forecast at 1.10 on the assumption that US inflation fears could be given another boost next year as a consequence of the US election outcome.
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 challenges YTD tops near 1.1170 on Powell
EUR/USD now picks up extra pace and revisits the 1.1170 region after Chief Powell somewhat “confirmed” a rate cut next month at his speech at Jackson Hole.
GBP/USD reaches new 2024 highs around 1.3200, Dollar plummets
The Greenback is now accelerating its decline and flirts with the area of 2024 low as Chair Powell signals that it is time to adjust monetary policy. GBP/USD picks up extra pace and challenges the 1.3200 region, clinching new 2024 peaks at the same time.
Gold keeps the bid bias unchanged above $2,500
The precious metal maintains its bullish stance in place on Friday, climbing above the $2,500 mark per ounce troy as Fed’s Powell signals an imminent rate cut.
Decentraland price is set for a rally after breaking above the descending trendline
Decentraland (MANA) price broke above the descending trendline and trades up 1.5% as of Friday at $0.291. Additionally, on-chain data support further price gains, as MANA's Exchange Flow Balance shows a negative spike, and the long-to-short ratio stays above one.
Jerome Powell expected to hint at upcoming interest-rate cut in September
Market participants will closely scrutinize Powell’s speech for any fresh hints on the trajectory of monetary policy, particularly about the magnitude of the Fed’s first interest-rate cut in years.
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.