EUR/USD Forecast Eyes 1.1800 as US Treasury Doubles Bond Buyback Plan

Key Facts

In a move reflecting a shift in US liquidity management, analysts project the EUR/USD pair to trend higher toward the 1.1800 resistance level. This trajectory is driven by the US Treasury's decision to double its bond buyback plan, which exerts downward pressure on US yields. According to reports, this expansion of the program contributes to a significant weakening of the US Dollar relative to the Euro.

These developments occur amid diverging economic data between both sides of the Atlantic, as market data from August 14, 2026, showed Eurozone GDP growth at 0.4% on a quarterly basis. Conversely, US retail sales recorded a contraction of -0.6% during the same period, bolstering the bullish outlook for the Euro against a Dollar pressured by increased money supply from the bond purchase expansion.

Traders should monitor technical resistance levels near 1.1800 as a primary target, given the absence of confirmed real-time price data for today's session. Looking at the economic calendar, there are no major upcoming catalysts for the Eurozone or the US in the immediate days ahead, leaving the market focus on the absorption of US Treasury liquidity and its ongoing impact on currency trends.