FX.co ★ EUR/USD
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EUR/USD
The euro rose against the dollar to around 1.1627, after the dollar experienced a sharp decline in the previous session and continued to face downward pressure. The dollar weakened broadly following comments from Federal Reserve Chairman Christopher Waller, which signaled an accommodative outlook. Financial markets significantly lowered their expectations for an interest rate hike at the Federal Open Market Committee (FOMC) meeting scheduled for September. Waller indicated that he would prefer to keep interest rates unchanged if underlying inflationary pressures continue to ease, and stressed that the Fed's next monetary policy decision would depend heavily on the August inflation data due next week. As a result, the market's expectation of a September rate hike fell to around 50%, a sharp drop from 63% the previous day. Furthermore, investors are closely watching the release of the US non-farm payrolls report for August on Friday, which is widely expected to be another key catalyst influencing monetary policy expectations and bolstering market sentiment. The dollar's weakness was exacerbated by a sharp rise in the value of the yen, which also added to the dollar's downward pressure. Market participants are closely monitoring the potential risks of official currency intervention, while speculation grows that the Bank of Japan may implement a more aggressive monetary tightening before the end of the year.
