Thu Sep 19 10:07:00 UTC 2024: ## Euro Gains on Weak Dollar as Fed Cuts Rates

**New York, NY -** The Euro surged past the 1.1150 mark against the US Dollar on Thursday, fueled by a weakening dollar in the wake of the Federal Reserve’s significant interest rate cut. The move, the first rate cut in over four years, saw the Fed lower the key borrowing rate by 50 basis points to 4.75%-5.00%, reflecting their commitment to protecting the labor market and their confidence in progress towards the 2% inflation target.

While the market had largely anticipated this move towards looser monetary policy, the Fed’s recent actions have solidified a bullish outlook for the Euro. Despite Fed Chair Jerome Powell’s initial efforts to support the dollar, his remarks lacked the strength to deter the Euro’s ascent.

Further fueling the Euro’s strength are positive inflation figures from the Eurozone, bolstering the European Central Bank’s (ECB) capacity to maintain a gradual rate cut cycle. This, combined with the ongoing weakening dollar, creates a favorable environment for EUR/USD.

The pair found support around the 1.10 level and continued its ascent after yesterday’s volatility, reaching as high as 1.1170 today. Looking ahead, the next significant resistance lies at the August peak of 1.12. A breakthrough at this level could potentially push the pair into the 1.125-1.132 range.

While the support range between 1.1075 and 1.1125 remains intact, offering a cushion for the pair, traders will be closely watching the dollar’s reaction to further pronouncements from the Fed.

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