EURUSD Analysis 20-August-2024

The Euro climbed above $1.107 (ERU/USD), marking its most substantial level in nearly eight months, as growing expectations for a Fed rate cut weakened the dollar.

EURUSD Analysis – 20-August-2024

Traders are almost specific about a 25 basis point cut in September, with a 24.5% possibility of a more significant 50 basis point cut and over 90 basis points of total rate cuts by the end of the year.

Attention now turns to the Fed’s Jackson Hole symposium, where Chair Jerome Powell is scheduled to speak on Friday. In Europe, markets await important business activity and wage growth data that could impact the ECB’s September decision.

The market predicts around 65 basis points of ECB rate cuts in 2024, suggesting two 25-basis-point cuts with a 60% chance of a third.