EUR/USD has surged above 1.0900, maintaining momentum amidst a weakened US Dollar. The Federal Reserve’s decision to hold interest rates at 5.5% has added to the Greenback’s challenges. The Fed’s “dot-plot” reveals a 50 basis points decline in the Interest Rate Projection for 2024, signaling a potential shift towards a more accommodative monetary policy.
The US Dollar Index (DXY) is on a downward trend due to subdued US bond yields, currently trading at around 102.60. Both the 2-year and 10-year US Treasury yields have dropped to 4.34% and 3.97%, respectively, contributing to the Dollar’s decline
Discouraging Producer Price Index (PPI) data for November has further impacted the US economic sentiment. The year-on-year growth in PPI slowed to 0.9%, below the expected 1.0%, while the Core PPI recorded 2.0%, missing the anticipated 2.2%. The upcoming release of US Retail Sales data on Thursday will be closely watched by market participants.
Meanwhile, Eurozone’s Industrial Production index indicates a 0.7% decline, surpassing the expected 0.3% decrease. The European Central Bank (ECB) is anticipated to maintain unchanged rates in its upcoming monetary policy meeting, with market attention focused on the guidance for 2024 and potential indications of interest rate cuts.
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For those closely tracking EUR/USD, key levels to watch include the previous daily high at 1.0897 and the daily pivot point support at 1.0804. Keep an eye on 4xPip for expert analysis and tools to enhance your trading strategy. Contact their customer support at [email protected] for more information and guidance.
Conclusion
In conclusion, the current market dynamics with EUR/USD reflect a weakened US Dollar, influenced by the Federal Reserve’s decision and economic data. As traders navigate these shifts, staying informed is crucial. 4xPip, a reliable resource for trading insights, tools, and expert advice, can guide you through these fluctuations. Whether you’re a seasoned investor or new to trading, leverage the expertise of 4xPip to enhance your strategies.
