EUR/USD finds the gas pedal once again after FOMC minutes

• EUR/USD drove further into fresh highs for the year on Wednesday.
• FOMC looks more likely to lean into September rate cuts after Meeting Minutes release.
• EU, US PMI figures still loom ahead on Thursday, as well as Jackson Hole.

EUR/USD pushed further into the high end on Wednesday, breaching 1.1150 and finding fresh 13-month highs on approach to 1.1200 as Fiber bids surges on broad Greenback weakness. The US Dollar is softer across the board in the midweek market session as investors continue to pile into bets that the Federal Reserve (Fed) will be forced to kick off a rate-cutting cycle in September.

Read more: Fed Minutes to give insight on policymakers' views

According to the Fed's latest Meeting Minutes, policymakers noted that discussions of when to deliver rate cuts to pleading market participants had already begin in July, further firming up odds of at least a quarter-point trim on September 18. In true market participant fashion, rate markets bolstered their bets of a double cut  from the Federal Open Market Committee's (FOMC) September meeting, with rate traders pricing in nearly 40% odds of a 50 bps trim on September 18.

Pan-European Purchasing Managers Index (PMI) activity survey results are expected early Thursday, with the EU Manufacturing and Services PMIs for August both expected to hold steady, at 45.8 and 51.9, respectively. 

US Purchasing Manager Index (PMI) business activity survey results are slated for release on Thursday, as well as the kickoff of the annual Jackson Hole Symposium which is set to run through the weekend. Wednesday will deliver the Federal Reserve's (Fed) latest Meeting Minutes, but market forces will broadly be looking ahead to Thursday's outings for reasons to move.

US S&P Global Manufacturing PMI activity expectations are forecast to hold steady at 49.6 in August, while the Services PMI component is expected to tick down a full point to 54.0 from 55.0. The kickoff of the Jackson Hole Symposium is expected to draw plenty of investor attention on Thursday, but Friday's appearance from Fed Chairman Jerome Powell can be expected to set the overall tone of market sentiment heading into next week.

EUR/USD price forecast

Fiber found yet another peak bid for 2024 on Wednesday as bulls race toward 1.1200. EUR/USD is up over 3% in August alone, and the pair is poised for it's best single-week performance since November of 2022.

Bullish momentum has broken the price action mold, with the pair up nearly 3.7% and climbing fast from the last swing low into 1.0777 at the beginning of August. The pair launched off of a technical floor at the 200-day Exponential Moving Average (EMA) which is currently rising into 1.0825.

EUR/USD daily chart