• EUR/USD crossed into new highs for the year as markets sell off the US Dollar.
• Investors are broadly anticipating further signs pointing to a September rate cut.
• US PMI figures still loom ahead alongside the impending kickoff of Jackson Hole.

EUR/USD breached into a fresh 13-month peak on Wednesday, testing north of 1.1150 as the pair continues to grind its way toward 1.1200. Markets are selling off the Greenback across the board as investor confidence in a September rate cut rises to dizzying highs. The Federal Reserve (Fed) is broadly expected to deliver at least a quarter-point rate cut on September 18, with markets hoping for the possibility of a double cut.

According to the Fed’s latest Meeting Minutes, policymakers noted that discussions of when to deliver rate cuts to pleading market participants had already begin in July, further firming up odds of at least a quarter-point trim on September 18. In true market participant fashion, rate markets bolstered their bets of a double cut  from the Federal Open Market Committee’s (FOMC) September meeting, with rate traders pricing in nearly 40% odds of a 50 bps trim on September 18.