US Dollar Retreats as Fed Hike Bets Fade. Forecast as of 03.09.2026

A glimmer of hope for de-escalation in the Middle East, combined with a slowdown in US hiring and neutral rhetoric from FOMC officials, has allowed the EUR/USD pair to regain its footing. However, can the rebound last? Let’s examine the outlook and develop a trading plan.Major Takeaways Falling oil prices and lower Treasury yields have supported the euro. The Fed may not raise interest rates in September. US private-sector employment data came in weaker than expected. A pullback from 1.161