US Dollar Sheds Its Ballast. Forecast as of 08.10.2024

Expectations of an aggressive 150-200 bp cut in the federal funds rate in the current cycle weighed heavily on EURUSD bears. The US labor market report for September provided a shift in this expectation. Let's discuss this topic and make a trading plan.Highlights and key points The market overestimated the scale of the Fed's monetary expansion. Trade wars and geopolitics may support the US dollar. September inflation in the US will give the euro a chance to grow. A pullback to 1.1-1.102 may crea