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EUR/USD Fluctuates Amidst Shifting Rate Cut Expectations

February 12, 2026, 06:01 PM169 words6 sourcesAI-Generated · Reviewed by editorial team
EUR/USD
EUR/USD Fluctuates Amidst Shifting Rate Cut Expectations

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The EUR/USD pair experienced volatility this week, influenced by fluctuating expectations regarding Federal Reserve interest rate cuts and economic data releases from both the US and the UK. Initially, the Euro benefited from improving yield spreads and a bullish technical trend, with Scotiabank analysts predicting a potential breakout above 1.20. However, stronger-than-expected US jobs data led to a pullback as traders reduced bets for a March rate cut, dropping odds from 20% to 5%, and April cuts from above 40% to 20%. This strengthened the US Dollar against the Euro. Conversely, the Pound Sterling saw gains against the USD, despite softer UK GDP figures, driven by contradictory US jobs data. Focus is now shifting to upcoming speeches from European Central Bank (ECB) members, Initial Jobless Claims, and Home Sales figures. Oil price increases also pose an inflationary risk for Switzerland, potentially offering relief to the Swiss National Bank. While the broader EUR/USD trend remains somewhat positive, near-term performance is heavily reliant on US economic data and Fed policy signals.

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This article is based on analysis of 6 source articles from our news database.

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