The EUR/USD pair weakens below 1.0300 amidst hawkish Fed remarks and tepid Eurozone Retail Sales.
EUR/USD softens to around 1.0300 in Friday’s Asian session. Several Fed officials favour slowing the pace of interest-rate cuts. Euro zone Retail Sales showed tepid growth in November. The EUR/USD pair trades with a mild negative bias around 1.0300 during the Asian trading hours on Friday. The Fed eral Reserve’s ( Fed ) move to delay the interest rate cut continues to lift the Greenback and exert some selling pressure on the major pair.
Traders brace for the US December Nonfarm Payrolls (NFP) report, which is due later on Friday. Several Fed officials signalled rate cut caution, citing elevated inflation and the uncertainty under the incoming Donald Trump administration. Fed Bank of Boston President Susan Collinssaid on Thursday that significant uncertainty over the outlook calls for the US central bank to move forward cautiously with future rate reduction. Meanwhile, Fed Governor Michelle Bowman noted that she sees the interest rates on hold for the time being until the data shows inflation has resumed its downward trend. The hawkish comments from the Fed policymakers could underpin the US Dollar (USD) against the Euro (EUR) in the near term. Across the pond, the Eurozone Retail Sales figures fail to boost the shared currency ahead of Friday’s US key employment data. Data released by Eurostat on Thursday showed that Retail Salesincreased 1.2% YoY in November after rising by a revised 2.1% in October. However, the Eurozone preliminary Harmonized Index of Consumer Prices (HICP) data for December has pushedback expectations that the European Central Bank (ECB) will deliver a jumbo rate cut. This, in turn, might help limit the EUR’s losses for the time being
EUR/USD Fed Interest Rates US Dollar Euro Inflation Retail Sales
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