EUR/USD Slides Towards One-Week Lows on Warsh's Rate Hike Comments
The EUR/USD exchange rate slipped towards one-week lows near 1.16 after Federal Reserve Chair Kevin Warsh's comments revived expectations of a September US interest rate hike.
The Dollar's yield support has strengthened, but the medium-term outlook remains uncertain due to concerns over the US fiscal deficit and potential dollar debasement.
Standard Chartered increased its 12-month EUR/USD forecast to 1.20 from 1.18, while Danske Bank forecasts losses to 1.12.