NewsPips AI
Menu

EUR/USD news for August 17, 2026

The euro has strengthened against the dollar, pushing EUR/USD to an eight-week high, as the dollar comes under selling pressure. Traders are scaling back expectations for Federal Reserve rate hikes, with some pointing to a cooling US economy and high oil prices as factors weighing on the greenback. The dollar's losses have extended, though it showed signs of stabilizing ahead of the North American session.

How the day unfolded

  1. EURUSD rose above 1.1550 as fading Fed rate hike expectations weighed on the dollar. Morgan Stanley notes disinflation is underway but flags risks to the 2027 rate outlook, while commentary about AI-driven inflation suggests potential pressure for higher rates, leaving the policy path uncertain for the pair.

  2. The euro advanced past 1.1550 against the dollar as market expectations for Federal Reserve rate hikes faded, which tends to reduce the dollar's yield advantage. Meanwhile, analysts at Morgan Stanley see disinflation underway but flag risks to the 2027 rate outlook, while separate commentary highlights AI-fuelled inflation as a potential driver of higher US rates. These crosscurrents may keep EURUSD sensitive to shifts in Fed policy expectations.

  3. The euro strengthened above 1.1550 as market expectations for Federal Reserve rate hikes faded, supporting the currency. However, conflicting signals on inflation—ranging from disinflationary trends to potential AI-driven price pressures—leave uncertainty around the Fed's future policy path, which could influence EURUSD moves.

  4. The euro strengthened above 1.1550 as expectations for Federal Reserve rate hikes faded, which weighed on the dollar. However, the rate outlook remains uncertain as Morgan Stanley highlights disinflation while other reports suggest AI-related inflation could pressure the Fed to consider higher interest rates. These mixed signals are driving the pair's recent volatility.

  5. The euro strengthened above 1.1550 as expectations for Federal Reserve rate hikes faded, providing support to the currency against the dollar. Separately, Morgan Stanley's commentary on disinflation and lingering risks to the 2027 rate outlook may keep central bank policy expectations in focus for the pair.

  6. The euro has strengthened against the dollar, reaching a two-month high, as fading expectations for Federal Reserve rate hikes and signs of a cooling US economy weigh on the greenback. High oil prices and a narrative of diminishing US dollar exceptionalism are adding to the dollar's pressure. Traders are now looking to Fed minutes and upcoming speeches for further direction.

  7. The US dollar started the week on the defensive, pressured by fading expectations for Federal Reserve rate hikes and a cooling US economy. This weakness helped the euro climb above 1.1550, reaching an eight-week high against the dollar. The move reflects ongoing market reassessment of the dollar's yield advantage.

  8. The euro is trading at an eight-week high against a broadly weaker US dollar, as fading expectations for Federal Reserve rate hikes and signs of a cooling US economy weigh on the greenback. High oil prices and a defensive start to the week for the dollar have further supported EUR/USD, with the pair eyeing a potential breakout as US dollar exceptionalism fades.

Headlines (13)

Scheduled events

As of 23:28 UTC

EUR/USD — latestAll EUR/USD daysWhat moves EUR/USDAll markets

Not investment advice. For informational purposes only.