Euro rises as markets price in a greater chance of a Fed rate cut

The euro gained about 1.5% against the U.S. dollar this week, lifting the EUR/USD exchange rate to around 1.0900. It was the pair’s strongest weekly performance since late 2024.

Weaker U.S. retail sales, higher-than-expected jobless claims and easing inflation increased expectations that the Federal Reserve could cut interest rates in September. CME FedWatch pricing put the chance at 65%, up from 45% a month earlier.

The currency’s next direction could depend on upcoming U.S. economic data, including the core PCE inflation index and PMI figures. A hotter inflation reading could support the dollar, while a softer result could extend the euro’s gains.

Read the full story at cryptorank.io.