Forex

The pair drops after the Australian central bank kept rates unchanged and delivered a hawkish message, while USD faces headwinds from Fed rate cut bets.

EURUSD is turning constructive into year-end, supported by bullish price structure, firm RSI and a widening policy gap as German 2-year yields strengthen against US equivalents. With markets expecting a Fed cut and Schnabel hinting the ECB’s next move could be a hike, monetary-policy divergence is increasingly guiding the pair higher.

Despite avoiding it last week, risk of new 2024 low remains high as the Fed heads to a shallower easing path, while the ECB may need to remain aggressive

Although its major peers are cutting rates, the RBA does not go do down this road and the Aussie reacts higher

The pair drops and heads towards its worst month of the year, as Australian inflation showed further moderation and is likely to add pressure to the RBA to follow its peers and start cutting rates

The pair has entered its fourth straight profitable week as bets of another hike by the BoJ this year dissipate and the Fed adopts a more served approach around easing

The dollar climbed to a two-and-a-half-month high, fueled by stronger-than-expected U.S. economic data, indicating the Federal Reserve may cut rates by only 50 basis points this year. With a strong correlation between rising real rates and the dollar's performance, the outlook remains positive for the greenback.

The pair extends this month’s losses, as UK inflation dropped below the 2% target for the first time in over three years, strengthening the case for bolder rate cuts by the central bank

The pair is having a positive month as lower Swiss inflation strengthens the case for further SNB easing, while persistence in the US leads to cautious commentary, but the upside contains key roadblocks

The pair extends its losses after the central bank of New Zealand accelerated its easing pace after August’s pivot as inflation cools, the economy contracted and unemployment is rising

The pair deepens the pullback from the 2024 peak as US NFPs moderate expectations around the Fed’s easing path and BoE governor Bailey offered dovish remarks