EUR/USD news for August 18, 2026
EUR/USD has been supported by fading expectations of a Fed rate hike and firm ECB tightening bets, which helped the pair reach an eight-week high. However, it struggles to sustain gains above 1.1600, with occasional dips below that level triggered by US-Iran war worries and a steadier dollar. The pair now consolidates below a two-month high as markets weigh Middle East risk and the outlook for monetary policy divergence.
How the day unfolded
The euro is trading near eight-week highs as the dollar comes under broad pressure, with fading expectations for Federal Reserve rate hikes and signs of a cooling U.S. economy weighing on the greenback. High oil prices are also cited as a factor undermining the dollar, while the euro's strength reflects this shift in market sentiment.
The euro has climbed to an eight-week high against the dollar as expectations for Federal Reserve rate hikes fade, with cooling US economic data and high oil prices weighing on the greenback. The dollar started the week on the defensive and has seen losses extended, though it is stabilizing ahead of the North American session. These factors are driving the current strength in EUR/USD.
The euro has climbed to an eight-week high against the dollar, with the greenback broadly on the defensive. Headlines attribute the dollar's weakness to fading expectations of Federal Reserve rate hikes, as a cooling US economy and high oil prices weigh on the currency. This shift in sentiment is underpinning EUR/USD's recent rise.
The euro climbed to an eight-week high above 1.1550 as the dollar came under broad pressure at the start of the week. The move is driven by fading expectations for Federal Reserve rate hikes, alongside a cooling US economy and high oil prices weighing on the greenback. This shift reflects reduced US exceptionalism, leaving EUR/USD to eye a breakout.
EUR/USD has climbed to an eight-week high as the dollar weakens on fading expectations of further Federal Reserve rate hikes. A cooling US economy and high oil prices are adding to dollar pressure, according to reports, leaving the pair elevated.
EUR/USD climbed to an eight-week high as the US dollar started the week on the defensive, with fading prospects of Federal Reserve rate hikes exerting downward pressure on the greenback. A cooling US economy and high oil prices have further weighed on the dollar, supporting the euro's strength.
EUR/USD is climbing, trading above 1.1550, as fading expectations for a Federal Reserve rate hike weigh on the dollar. The greenback is under broad pressure this week, with a cooling US economy and high oil prices cited as contributing factors. These developments are supporting the euro's advance to an eight-week high.
The euro has been supported by fading Federal Reserve rate hike expectations and firm European Central Bank tightening bets, pushing EUR/USD to an eight-week high. However, momentum stalled near 1.1600, with the pair dipping below that level on US-Iran war worries and as the US dollar steadied after sagging to two-month lows. Geopolitical risk and shifting monetary policy expectations are keeping the pair in consolidation below its recent high.
EUR/USD has been supported by fading expectations of a Federal Reserve rate hike and persistent ECB tightening bets, with the pair recently touching eight-week highs. However, gains have been capped around 1.1600, with the pair slipping back on US-Iran conflict worries and struggling to break higher, leaving it consolidating below a two-month high.
EUR/USD has been supported by fading bets on Federal Reserve rate hikes and expectations of European Central Bank tightening, lifting the pair to an eight-week high. However, the advance has stalled around 1.1600, with the pair consolidating below a two-month high as geopolitical worries over US-Iran tensions and broader Middle East risk weigh on sentiment, providing some support to the US dollar.
EUR/USD has been volatile as fading Fed rate-hike expectations and geopolitical tensions in the Middle East influenced the US dollar. The pair reached an eight-week high but struggled near 1.1600, later slipping below its 100-day SMA before consolidating. Market attention remains on the interplay between Fed and ECB policy expectations and geopolitical risk.
EURUSD has been swayed by changing Fed rate hike expectations and geopolitical tensions, with fading Fed hike bets supporting the euro while US-Iran worries have triggered declines. The pair recently touched an eight-week high but is now consolidating below a two-month high as the US dollar steadies, and analysts suggest an upside break may take time.
Headlines (14)
- Euro strengthens above 1.1550 as Fed rate hike bets fadewww.fxstreet.com · Aug 17, 00:21 UTC
- Dollar comes under pressure to start the new weekinvestinglive.com · Aug 17, 04:38 UTC
- US Dollar Exceptionalism Fades as EUR/USD Eyes Breakoutwww.investing.com · Aug 17, 06:46 UTC
- Cooling US Economy and High Oil Prices Weigh on Dollar. Forecast as of 17.08.2026www.litefinance.org · Aug 17, 07:28 UTC
- Dollar Falls Sharply on Fading Prospect of Federal Reserve Raising Rateswww.wsj.com · Aug 17, 09:06 UTC
- EUR/USD at Eight-Week High: What Happens Nextwww.investing.com · Aug 17, 09:57 UTC
- Dollar's Losses Extended, but Stabilizing Ahead of the North American Sessionwww.marctomarket.com · Aug 17, 11:18 UTC
- Kickstart the NA session for August 17: USD starts the week on the defensive.investinglive.com · Aug 17, 12:13 UTC
- EUR/USD Gains as Fed Hike Odds Fall and ECB Tightening Bets Holdwww.investing.com · Aug 17, 20:16 UTC
- EUR/USD Price Forecast: Struggles at 1.1600, dives below 100-day SMAwww.fxstreet.com · 00:17 UTC
- Forex Today: US Dollar sags to two-month lows as Middle East risk lifts Oil and Goldwww.fxstreet.com · 00:17 UTC
- EUR/USD upside break may have to waitinvestinglive.com · 06:15 UTC
- Euro declines below 1.1600 on US-Iran war worrieswww.fxstreet.com · 06:40 UTC
- Euro consolidates below two-month high as US Dollar steadieswww.fxstreet.com · 13:20 UTC
Scheduled events
As of 23:54 UTC
- 2026-08-18 — ZEW Economic Sentiment · forecast 25.9 · EUR
- 2026-08-18 — German ZEW Economic Sentiment · forecast 30.1 · EUR
- 2026-08-18 — ADP Weekly Employment Change · USD
- 2026-08-18 — Building Permits · forecast 1.37M · USD
- 2026-08-18 — Housing Starts · forecast 1.34M · USD
- 2026-08-18 — Import Prices m/m · forecast 0.1% · USD
- 2026-08-18 — Capacity Utilization Rate · forecast 76.3% · USD
- 2026-08-18 — Industrial Production m/m · forecast 0.3% · USD
Not investment advice. For informational purposes only.