The EUR/USD extended its rally above 1.1750 following dovish remarks from Atlanta Fed President Raphael Bostic. He expressed openness to one rate cut in 2025, while also emphasizing a stable labor market and inflation risks that have yet to fully materialize.
Although the pair has held above the key psychological level of 1.1700 since June 26, it wasn’t until today that it decisively broke above 1.1730, marking a fresh push higher.
Key insights from the Atlanta Fed President:
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No rate hike needed to reach 2% inflation; one cut expected in 2025, three in 2026.
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Fed can be patient; more data needed before policy changes.
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Wage growth back to pre-pandemic levels; job market remains stable, with low hiring/firing appetite.
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Consumers are more cautious amid uncertainty.
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Tariff-related inflation is coming, with impacts likely into 2026.
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Firms passing on tariff costs gradually; not all pricing effects seen yet.
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Outlook uncertain, driven by more than just trade policy.
Source: xStation5
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