EUR/USD Forecast: A drop to 1.0600 is not ruled out

The intense buying interest in the US Dollar (USD) led the USD Index (DXY) to build on Tuesday’s gains and advance to multi-week highs past the 106.00 barrier on Wednesday, exerting notable pressure on risk-sensitive assets and sending EUR/USD to fresh monthly lows near 1.0660.

EUR/USD added to Tuesday’s losses below 1.0700. The US Dollar rose to multi-week highs, helped by yields. Germany’s Consumer Confidence receded in July. The intense buying interest in the US Dollar led the USD Index to build on Tuesday’s gains and advance to multi-week highs past the 106.00 barrier on Wednesday, exerting notable pressure on risk-sensitive assets and sending EUR/USD to fresh monthly lows near 1.0660.

Additionally, Board member Fabio Panetta suggested the ECB could gradually reduce interest rates as inflation falls, while ECB Chief Economist Philip Lane projected continued interest rate cuts if price pressures ease but may slow down in case of unexpected surprises. The CME Group's FedWatch Tool now indicates nearly a 63% probability of lower interest rates in September and around 93% in December.

We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

FXStreetNews /  🏆 14. in US

Recommended Currencies ECB Fed

United States Latest News, United States Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

EUR/USD Forecast: EUR/USD holds in range after a disappointing US ADP surveyFinancial markets were mostly quiet throughout the first half of the day, with the US Dollar achieving modest intraday gains amid prevalent caution.
Read more »

EUR/USD: Topside for EUR/USD is very limited – Societe GeneraleThis morning’s IFO data confirm what the PMIs told us – expectations are down, FX strategist Kit Juckes at Societe Generale notes.
Read more »

EUR/USD Forecast: Euro tests 1.0700 as USD stages impressive comebackFollowing Wednesday's upsurge, EUR/USD turned south and registered large losses on Thursday.
Read more »

Weekly forex analysis: EUR/USD, GBP/USD, AUD/USD and more [Video]Weekly forex forecast covers forecast on EUR/USD , GBP/USD , AUD/USD , NZD/USD , USD/CAD , USD/JPY , USD/CHF Forecast.Our weekly forex forecast covers technical analysis, price action on major forex pairs , assets using the high-timeframes and market environment.
Read more »

US Dollar Price Action Setups: EUR/USD, AUD/USD, USD/CHF Levels to WatchUS dollar setups come into focus as data weakens. EUR/USD awaits ECB cut, AUD/USD eyes lower levels on waning risk appetite, and USD/CHF flashes overheating signals after a sharp drop
Read more »

Weekly Forex Analysis Video: EUR/USD, GBP/USD, AUD/USD and moreWeekly forex forecast covers forecast on EUR/USD , GBP/USD , AUD/USD , NZD/USD , USD/CAD , USD/JPY , USD/CHF Forecast.Our weekly forex forecast covers technical analysis, price action on major forex pairs , assets using the high-timeframes and market environment.
Read more »