Currency Update July 2024

The recent developments regarding the US Dollar and the Federal Reserve's outlook have had a significant impact on the EUR/USD currency pair. 

Fed’s Optimism on Inflation:

Federal Reserve officials expressed optimism about the progress in controlling inflation. This indicates that the measures taken so far, including interest rate hikes, are starting to show positive effects.

Despite the progress, the Fed has indicated that it is still premature to lower interest rates. The cautious stance suggests that while inflation is moving in the right direction, it is not yet at a level where the Fed feels comfortable reducing borrowing costs

The recent communications from the Federal Reserve have led to a significant move in the EUR/USD pair, pushing it above the $1.08 level. While the Fed remains optimistic about inflation, it is still too early to cut rates, leading to a sell-off in the US dollar. We will continue to monitor economic indicators and Fed statements closely, as these will provide further insights into the future direction of interest rates and the EUR/USD pair.

For now, the outlook suggests a potential for continued euro strength, especially if the US dollar remains under pressure from shifting market expectations regarding Fed policy.

To find out what this means for your transfers, or how to control the cost of your international payments please contact the friendly experts at Spartan FX.

kippertree@spartanfx.co.uk

https://www.spartanfx.co.uk/partner-kippertree.php

+44(0)203 984 0450 (or email to set up a free WhatsApp call)