EUR/USD TOUCHES 1.13 AFTER FED’S POWELL SIGNALS READY TO CUT RATES
- EUR/USD tipped into 1.1300 for the first time in over a year on Friday.
- Fed policymakers open the door to rate cuts during Jackson Hole.
- Coming up next week: key EU and US inflation prints.
EUR/USD rallied into its second-best day of August, climbing seven-tenths of one percent as the US Dollar tumbles across the board. Market risk appetite is pinned into the ceiling after Federal Reserve (Fed) officials broadly tipped their hand to investors, signalling that the US central bank is finally ready to start cutting interest rates.
According to the CME’s FedWatch Tool, rate markets are pricing in roughly three-to-one odds of a double cut on September 18, with the rest of the rate board still committed to a single quarter-point cut. Bets of a 50 bps opening rate trim in September rose after Fed Chairman Jerome Powell, while speaking at the Jackson Hole Economic Symposium on Friday, openly admitted that the time has finally come for the US central bank to begin pushing reference rates down
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