EUR/USD RISES TO NEAR 1.1200 DUE TO DOVISH FED’S POWELL
- EUR/USD gains ground due to rising expectations of a Fed rate cut in September.
- Fed Chair Powell stated at the Jackson Hole Symposium, "The time has come for policy to adjust.”
- ECB official Olli Rehn stated that the recent slowdown in inflation bolsters the case for a rate cut next month.
EUR/USD extends its gains for the second session, trading around 1.1190 during the Asian session on Monday. This upside of the EUR/USD pair is attributed to the lower US Dollar (USD) following the dovish speech from the US Federal Reserve (Fed) Chairman Jerome Powell at the Jackson Hole Symposium on Friday.
Fed Chair Jerome Powell stated, "The time has come for policy to adjust." Although Powell did not specify when rate cuts would begin or their potential size, markets anticipate the US central bank will announce a 25-basis points rate cut at the September meeting.
Additionally, Philadelphia Fed President Patrick Harker emphasized on Friday the need for the US central bank to lower interest rates gradually. Meanwhile, Chicago Fed President Austan Goolsbee noted that monetary policy is currently at its most restrictive, with the Fed now focusing on achieving its employment mandate.
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