Posted 12/27/2023, 2:05:28 PM
Euro Rallies to Six-Month High Against US Dollar on Rate Cut Hopes
- Euro rises to highest level against US dollar since July, fueled by Federal Reserve signaling future rate cuts
- Euro has gained 3.4% this year, with much of rally occurring in past few weeks after Fed commentary
- Lower yields, higher equities, and expectations of Fed easing have supported a "risk rally"
- Euro's gains may be limited due to weak German economy and recession risks in the region
- Seasonal tendencies typically lead to US dollar weakening toward the end of the year