Forex
EUR/USD Exchange Rate Holds Steady Amid Fed Rate Hike Expectations
The EUR/USD exchange rate held close to 1.1600 last week despite a surge in US Treasury yields, but markets are now focused on the Federal Reserve's policy decision this week.
A September rate hike is increasingly expected, and markets are pricing in a 70% chance of a Fed rate increase at this meeting.
SEB expects the Dollar to hold steady in the short term and potentially advance slightly over the remainder of 2026, but predicts the Euro will strengthen to 1.23 by the end of 2027.