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EUR/USD extends consolidation in Christmas week market lull
The post EUR/USD extends consolidation in Christmas week market lull appeared on BitcoinEthereumNews.com. EUR/USD oscillates around 1.0400 amid thin trading volume, while its broader outlook remains weak amid a firm US Dollar. The Greenback remains firm as the Fed is expected to deliver fewer interest rate cuts in 2025. Investors expect the ECB to reduce its Deposit Facility rate by a further 100 bps next year. US Initial Jobless Claims for the week ending Dec 20 surprisingly fell to 219K. EUR/USD trades in a narrow range around 1.0400 in Friday’s European session amid thin trading as market participants stay on the sidelines due to the Christmas holiday. The pair struggles for direction while the US Dollar (USD) ticks higher on firm expectations that the Federal Reserve (Fed) will follow a gradual policy-easing path as inflation has rebounded slightly in the last three months. The US Dollar Index (DXY), which tracks the Greenback’s value against six major currencies, stays above the crucial support of 108.00. The performance of the USD has remained upbeat in the last few months in part by expectations of firm growth under the administration of United States (US) President-elect Donald Trump and growing speculation of a slowdown in the Fed’s easing cycle. The latest Fed dot plot showed that policymakers see Federal fund rates heading to 3.9% by the end of 2025, suggesting that there will be two interest rate cuts next year instead of the four trims previously anticipated. Despite the latest signs from the dot plot, analysts at BCA research say that the Fed will cut rates by more than 50 basis points (bps) next year amid expectations that price pressures will undershoot central bank’s target of 2% and the jobless rate will rise over Fed’s forecast of 4.3%. The report added that fewer interest rate cuts would require a “significant improvement in labor market momentum, a trend…
The post EUR/USD extends consolidation in Christmas week market lull appeared on BitcoinEthereumNews.com.
EUR/USD oscillates around 1.0400 amid thin trading volume, while its broader outlook remains weak amid a firm US Dollar. The Greenback remains firm as the Fed is expected to deliver fewer interest rate cuts in 2025. Investors expect the ECB to reduce its Deposit Facility rate by a further 100 bps next year. US Initial Jobless Claims for the week ending Dec 20 surprisingly fell to 219K. EUR/USD trades in a narrow range around 1.0400 in Friday’s European session amid thin trading as market participants stay on the sidelines due to the Christmas holiday. The pair struggles for direction while the US Dollar (USD) ticks higher on firm expectations that the Federal Reserve (Fed) will follow a gradual policy-easing path as inflation has rebounded slightly in the last three months. The US Dollar Index (DXY), which tracks the Greenback’s value against six major currencies, stays above the crucial support of 108.00. The performance of the USD has remained upbeat in the last few months in part by expectations of firm growth under the administration of United States (US) President-elect Donald Trump and growing speculation of a slowdown in the Fed’s easing cycle. The latest Fed dot plot showed that policymakers see Federal fund rates heading to 3.9% by the end of 2025, suggesting that there will be two interest rate cuts next year instead of the four trims previously anticipated. Despite the latest signs from the dot plot, analysts at BCA research say that the Fed will cut rates by more than 50 basis points (bps) next year amid expectations that price pressures will undershoot central bank’s target of 2% and the jobless rate will rise over Fed’s forecast of 4.3%. The report added that fewer interest rate cuts would require a “significant improvement in labor market momentum, a trend…
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