Many years ago, the EUR/USD was in 1.18, and now, many years later, there is only a few lower cents, says FX analyst from Commerzbank, Michael Pfister.
EUR/USD points to the level of 1.18 in the next few days
“It is not impossible that we reach 1.18. Yesterday afternoon, the US dollar was once again under pressure after reports that Donald Trump could announce a successor for Jerome Powell as soon as in October. This increases the risk that Powell becomes a ‘lame duck’ in his last months as president of the Fed, and with it the risk of earlier cuts of interests.
“As I mentioned yesterday, the discussions about Fed Rate Trims have won impulse in recent days. Yesterday news were a fluid continuation of this trend, with the market now assessing almost 20 basic points of additional cuts of interest rates for December, compared to last week. The emerging differences between those responsible for decision -making, together with the continuous pressure of Trump over more aggressive officials, there seem to be more aggressive officials. reflected in the market. “
“Interestingly, the US dollar seems to be suffering from this correction in the expectations of interest rates, despite not having been able to benefit from the elimination of rates cuts in the previous weeks. At first, this seems confused, but the relationship between the expectations of interest rates and the US dollar has not always been as strong as it has been in recent months. However, if those responsible for the policy continue to move Towards earlier and older rates, then there is a good possibility that EUR can point to the level of 1.18 in the next few days. “
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
