Euro on track for fourth consecutive weekly gain

Single Currency Above $1.11 for the First Time This Year
Hopes of Narrowing the Interest Rate Gap between Europe and the U.S. Grow
Market Awaits Christine Lagarde’s Comments at Jackson Hole

The euro rose in the European market on Friday against a basket of major and minor currencies, to resume gains that were temporarily halted yesterday against the US dollar as part of corrections and profit-taking, to approach again the highest level in eight months, on the verge of achieving a fourth consecutive weekly gain, thanks to growing hopes of narrowing the interest rate gap between Europe and the United States.

Where the existing possibilities about global interest rates indicate that the European Central Bank will cut interest rates by about 25 basis points before the end of the year, while the Federal Reserve will cut interest rates by about 100 basis points.Price outlook • Euro exchange rate today: The euro rose against the dollar by 0.20% to ($1.1132), from the opening price of trading at ($1.1112), and recorded a low at ($1.1108).

• The euro ended Thursday’s trading down 0.35% against the dollar, in the first loss in the last five days, after recording the previous day an eight-month high of $ 1.1174.

Weekly trading throughout this week’s trading, which officially ends when prices settle today, the euro is up so far by about 0.95% against the dollar, on the verge of achieving the fourth consecutive weekly gain.

European Interest Rate• Consumer price data in July’s final reading released earlier this week confirmed that inflation is accelerating again in Europe, indicating renewed inflationary pressures on monetary policymakers at the European Central Bank.

Traders almost completely price the odds of the ECB cutting interest rates by another 25 basis points before the end of this year.
The market is waiting for more data that shows the development of growth and inflation levels in the euro area during the coming period.
The market awaits the comments of ECB President Christine Lagarde at the Jackson Hole Economic Forum.
Traders almost completely price the odds that the Federal Reserve will cut interest rates by about 100 basis points before the end of this year.

Federal Reserve Chairman Jerome Powell will speak at the Jackson Hole Forum later on Friday.

The interest rate gap between Europe and the United States is currently at 125 basis points in favor of US interest rates.With the current prospects around European and US interest rates, the gap is expected to narrow to 50 basis points before the end of the year, which is in favor of the appreciation of the euro against the dollar.Euro performance expectations • We expect here at FX News Today: The euro continues to move in positive territory against the US dollar, with strong prospects of hitting new record highs in eight months, especially if Jerome Powell’s comments are less aggressive than currently expected in the markets.

Scotia Bank analyst Sean Osborne said: “The daily chart shows that the euro has maintained a steady uptrend since June, and short, medium and long-term trend indicators remain bullish.
Societe strategists said: The EUR/USD pair recently broke through its symmetrical triangle, indicating the possibility of a growth towards 1.1140 and a July 2023 high of

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