The post EUR/USD revisits 1.1100 as US Dollar declines to multi-month lows appeared on BitcoinEthereumNews.com.

EUR/USD gains to 1.1100 due to weakness in the US Dollar. The US Dollar faces a sell-off amid firm Fed September rate-cut bets. ECB Rehn sees market expectations for rate cuts in September as appropriate. EUR/USD rises to a more than seven-month high near the round-level resistance of 1.1100 in Tuesday’s New York session. The major currency pair gains as the US Dollar (USD) continues to face a sheer sell-off, weighed by firm expectations that the Federal Reserve (Fed) will begin cutting interest rates in September. The US Dollar Index (DXY), which tracks the Greenback’s value against six major currencies, hovers near a seven-month low at around 101.80. Market speculation for Fed interest rate cuts has strengthened as officials seem to be more worried about the United States (US) labor market and remain confident that price pressures are on track to the 2% target. On Monday, Minneapolis Fed Bank President Neel Kashkari cited concerns over signs of weakening labor market conditions and favored rate cuts in September. “The balance of risks has shifted, so the debate about potentially cutting rates in September is an appropriate one to have,” he said in an interview with The Wall Street Journal. “If we saw some quicker deterioration in the labor market, then that would tell me, ‘well, we need to do more, quickly, to support the labor market, even if we have uncertainty about where our ultimate destination is going to be,” he added. However, Kashari pushed back expectations of the Fed’s jumbo rate cuts citing that layoffs remain low and higher jobless claims are not a sign of labor market deterioration. For more cues on the interest rate path, investors will focus on the release of the Federal Open Market Committee (FOMC) minutes for the July meeting on Wednesday, and the Fed Chair Jerome Powell’s speech at the Jackson…

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Filed under: News - @ August 20, 2024 2:24 pm