At last week’s European Central Bank (ECB) meeting, the bank kept policy unchanged as expected, and there were no comments about future changes. After that, President Lagarde said ‘disinflation has ended,’ which made the market think rate cuts are finished for now. This pushed the euro higher.
On the other hand, the U.S. Consumer price index (CPI) data was as expected, so there was no big movement, and the euro ended the week almost the same as the previous week.
While the ECB is stopping rate cuts, this week’s U.S. Federal Reserve (FOMC) meeting may cut rates by 0.25% or 0.5%. If the euro breaks above this year’s high of 1.1829, it may aim for the 1.20 level.
Forecast range for EUR/USD: 1.1630 – 1.1830 USD
Note: This information does not guarantee profits. Please make your own decisions when trading.