![](\"https:\/\/www.financialmirror.com\/wp-content\/uploads\/2024\/08\/20240808-oanda-EURUSD-euro-dollat-tradingview-1024x439.png\")
EURUSD\u00a0by<\/strong> TradingView<\/p>\n(Source: OANDA)<\/p>\n","protected":false},"excerpt":{"rendered":"
EURUSD\u00a0slumped below\u00a01.0900 in Thursday\u2019s American\u00a0trading. The major currency pair weakened\u00a0as the Dollar recovers strongly\u00a0on soft US Initial Jobless Claims data for the week ending August 2.<\/p>\n
Individuals claiming jobless benefits for the first time came in lower at 233,000 than estimates of\u00a0240,000, and\u00a0the prior release of 249K.\u00a0The DXY Dollar Index, which tracks the greenback\u2019s value against six major currencies, bounced back to near 103.40.<\/p>\n
While the near-term outlook of the\u00a0shared currency pair remains uncertain, with investors confident that\u00a0the Federal Reserve will choose an aggressive monetary policy stance to tame upside risks to potential US economic slowdown.<\/p>\n
According to the CME FedWatch tool, 30-day Federal Funds futures pricing data shows that traders see 50 basis points (bps) cut in interest rates in September as imminent. The data also suggests that the Fed will reduce its key borrowing rates by more than 100 bps this year.<\/p>\n
Meanwhile, market participants have anticipated that the Fed could announce emergency rate cuts as the US economy is exposed to a recession.<\/p>\n
On the contrary, economists at Goldman Sachs wrote in a note, \u201cwhile market stress is noticeably higher than a week ago, our Financial Stress Index (FSI) suggests that there have been no serious market disruptions to date that would force policymakers to intervene.\u201d<\/p>\n
Market speculation that the Fed would deliver hefty rate cuts was bolstered by upside risks to job growth and a sharp contraction in the manufacturing sector.<\/p>\n