EURUSD Hits 2-Month High as Fed Hike Bets Fade and Japan GDP Misses at 1.1%
Updated
Updated · XTB · Aug 17
EURUSD Hits 2-Month High as Fed Hike Bets Fade and Japan GDP Misses at 1.1%
3 articles · Updated · XTB · Aug 17
Summary
EURUSD climbed to a two-month high and Asian equities rallied after Friday’s weak US retail sales and other data further reduced expectations for additional Federal Reserve rate hikes.
Japan’s preliminary Q2 GDP grew at a 1.1% annualized pace, missing the 2.1% forecast, easing pressure on the Bank of Japan to tighten quickly even as domestic consumer weakness stood out.
USDJPY pulled back from the 160 level again, with softer Japanese growth weighing on yen tightening bets while broad US dollar weakness kept the pair below that psychological barrier.
S&P 500 futures traded just 0.3% below last week’s record high, extending a risk-on tone that follows Wall Street’s third straight week of gains.
With no major US earnings due, traders are looking to the Empire State index, NAHB housing data and central bank remarks for the next test of whether the global rally can hold.
With institutional equity allocations hitting historic extremes, is this broadening 2026 bull market a fundamental triumph or a fragile bubble?
Could hidden technical squeezes and severe concentration risks secretly undermine the narrative of 2026's seemingly unstoppable global stock market rally?