EUR/USD: Door open to test 1.05 near term.

EUR is losing more steam. Economists at Credit Suisse analyze the shared currency outlook.Only 70 bps of rate cuts are priced for the ECB from Sep ’23 to Sep ’24

Softer inflation data are causing EUR to lose upward momentum.

The fact that only 70 bps of rate cuts are priced for the ECB from Sep ’23 to Sep ’24 stands in sharp contrast with the more aggressive rate cut pace priced into the US curve. EUR is left as a relative G10 low yielder that is now losing the upward rate momentum that was so instrumental to its strength over the past 8 months, but without the cushion of dramatic 2024 cuts having already been priced in. This in our view leaves open the door for EUR/USD to test 1.0500 near term.

EUR/USD clings to modest gains above 1.0700

EUR/USD gathered recovery momentum and climbed above 1.0700 after dropping below 1.0670 earlier in the day. In the absence of high-tier data releases, the positive shift witnessed in risk sentiment makes it difficult for the US Dollar to gather strength, helping the pair edge higher.

EUR/USD News

GBP/USD bounces above 1.2450 as US Dollar struggles

GBP/USD extended its rebound beyond 1.2450 on Wednesday, with the US Dollar facing renewed selling pressure. The improving market mood, as reflected by US stock index futures moving into positive territory, supports the pair’s recovery mid-week.

GBP/USD News

Gold rebounds above $1,960 as choppy action continues

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