At yesterday’s ECB meeting, the central bank decided, as expected, to keep interest rates unchanged, with full agreement. The statement gave no new policy details. However, President Lagarde said that “the disinflation process is over” and “inflation is in line with the 2% target.” From this, the market thinks ECB rate cuts are almost finished.
Soon after, the U.S. Consumer Price Index (CPI) was released and was close to forecast. This made the market more confident that the Federal Reserve will cut rates at next week’s meeting. The dollar was sold, and the euro rose to 1.1746.
Because the ECB is seen as finishing cuts while the Fed may cut more, the euro is expected to stay supported. But before the FOMC meeting next week, the upside around 1.18 is heavy, so EUR/USD may continue moving in the same range since August.
EUR/USD Forecast Range: 1.1650 – 1.1770 USD
Note: This information does not guarantee profit. Please make your own trading decisions.