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EUR/USD $1.54

Speculation is growing that America’s Federal Reserve will step up its interest rate cuts. Following a slew of poor economic news from America on Friday (7 March) there are reports that US rates will hit 1% by the summer – some are predicting a rerun of the emergency cuts we saw on 21 January when 75 basis points was lopped off in one fell swoop. But the next meeting of the Federal Open Market Committee is on Tuesday (18 March) and any decision is likely to be deferred until then. The lead up to Tuesday’s meeting is likely to result in further weakening of the dollar against all major currencies.

ACTION: BUY EUR/USD • Target $1.65 • Stop Loss $1.49

TIME TARGET: 1 WEEK