Fed Day May Propel Euro to 1.20 for the First Time Since 2021

Federal Reserve and US Dollar Outlook: The Federal Reserve is unlikely to cut rates soon, but any dovish signals could weaken the US dollar, potentially pushing the euro above 1.20, its highest level since 2021.

Euro's Recent Performance: The euro has seen strong growth recently, attributed to a more pragmatic approach by European policymakers, including increased spending in Germany to combat manufacturing slowdowns.

Investment Trends: Europe is perceived as more predictable than the US, influencing investment flows, with European equities outperforming US stocks last year amid concerns over US market valuations.

Technical Analysis of EUR/USD: The euro's rise could continue if the Fed signals rate cuts, with potential targets beyond 1.20 being the early 2021 high of 1.2225 and the 2018 high of 1.2475.