Boston Federal Reserve (Fed) Bank President Susan Collins said during the late European trading session on Thursday that she sees the central bank holding interest rates at their current levels for longer. Collins added that she expects interest rate cuts to be the baseline scenario going ahead.
💡 DMK Insight
Collins’ comments on interest rates signal a potential shift in market sentiment. If the Fed holds rates longer, it could lead to a weaker dollar, impacting forex pairs like EUR/USD and GBP/USD. Traders should watch for shifts in inflation data and employment figures, as these will influence the Fed’s decisions. The market’s current pricing suggests a cautious approach, but if cuts are indeed on the horizon, we might see a rally in risk assets like equities and crypto. Keep an eye on the 1.10 level for EUR/USD; a break above could signal bullish momentum. On the flip side, if inflation remains sticky, the Fed might hold off on cuts longer than anticipated, leading to volatility. So, it’s crucial to monitor upcoming economic indicators closely, as they could shift market dynamics rapidly.
📮 Takeaway
Watch the 1.10 level in EUR/USD; a break could signal a bullish trend if rate cuts are confirmed.





