Fed outlook: Expects three consecutive 25bp cuts (Sept, Oct, Dec 2025), with more easing in 2026, bringing the Fed’s terminal rate down to 3.25%.
USD pressure: Cheaper hedging costs from Fed cuts should trigger more USD selling, alongside seasonal weakness and the risk of a new Fed chair in 2026.
Eurozone story: Fiscal expansion in Germany could deliver 2% growth through 2026, adding euro support and possibly leading the ECB to tighten ahead of the Fed.
Risks:
US jobs market shows resilience.
US tariffs on the EU dampen sentiment.
The pair is currently just over 3 big figures away from 1.20. That's also close to the double-top highs the pair got to back in 2021.
This article was written by Arno V Venter at investinglive.com.Hence then, the article about ing believes usd weakness paves the way for eurusd to 1 20 was published today ( ) and is available on forex live ( Middle East ) The editorial team at PressBee has edited and verified it, and it may have been modified, fully republished, or quoted. You can read and follow the updates of this news or article from its original source.
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