The Euro weakened against the US dollar on Tuesday, with traders eagerly anticipating the Federal Reserve's final rate decision of the year. The focus is on the Fed's policy outlook amidst mixed economic signals.
EUR/USD dropped another 0.5% against the US dollar on Tuesday. US economic data is the main driver of market sentiment, while the Eurozone has a light data week. Traders are focused on the Federal Reserve 's last rate decision of 2024. The Euro's upward momentum faded as traders await the Fed's announcement. European markets largely ignored appearances by several European Central Bank officials earlier this week, even though December PMI figures beat expectations.
The pan-EU Services PMI survey remains in contraction territory due to concerns over a deepening economic slowdown in Europe, which continues to worry investors and businesses. US Retail Sales rose 0.7% month-over-month, raising some concerns that the Fed might not need to cut rates aggressively, especially given recent increases in inflation. Despite this, markets still expect the Fed to cut rates by 0.25% on Wednesday, with a 95% probability according to the CME's FedWatch Tool. The EUR/USD daily chart shows consolidation above 1.0450 after a sharp decline from late October highs near 1.1000. This recent stabilization coincides with investor expectations for the Federal Reserve's expected quarter-point rate cut on Wednesday, which has introduced some uncertainty into the US dollar's trajectory. Prices are capped by the 50-day Exponential Moving Average (EMA) at 1.0658, with a longer-term bearish bias indicated by the 200-day EMA at 1.0809, sloping downwards. A break below the key support at 1.0450 could see bears revisit the psychological 1.0400 level
EUR/USD Federal Reserve Interest Rates US Dollar Eurozone Economy
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
EUR/USD Dips Amid Mixed European Data, Fed Meeting in FocusThe EUR/USD pair fell slightly below 1.0500 on Tuesday as mixed European economic data kept the Euro under pressure. Investors are now eagerly awaiting the Federal Reserve's policy decision on Wednesday, which is expected to include a 25 basis point rate cut. Technical indicators suggest a neutral short-term outlook for EUR/USD.
Read more »
EUR/USD Dips Below 1.0500 as US Dollar Strengthens on Fed Rate Cut ExpectationsThe EUR/USD currency pair fell below the significant psychological level of 1.0500 on Tuesday, driven by the US Dollar's strength. The market anticipates the Federal Reserve (Fed) to decrease interest rates by 25 basis points but maintain a hawkish outlook for 2025. Meanwhile, the European Central Bank (ECB) officials favor a gradual easing of monetary policy.
Read more »
EUR/USD depreciates to near 1.0550 due to caution surrounding the Fed’s policy outlookEUR/USD edges lower to near 1.0550 during the Asian trading hours on Thursday.
Read more »
EUR/USD holds ground above 1.0500 as looming Fed decisionEUR/USD starts the week by extending its gains, trading around 1.0520 during the Asian session on Monday.
Read more »
EUR/USD Remains Range-Bound as Investors Await Fed DecisionThe EUR/USD pair held steady around 1.0500 on Tuesday, reflecting a cautious market sentiment ahead of key central bank announcements. Tepid US economic data limited the US Dollar's strength, while the Euro received some support from positive German ZEW Survey results. The focus now turns to the Federal Reserve's monetary policy decision on Wednesday, where a 25 basis point interest rate cut is widely anticipated.
Read more »
EUR/USD hovers around 1.0550 near yearly lows amid cautious Fed, dovish ECBThe EUR/USD pair trades around 1.0550 during Monday’s Asian trading session, hovering near its yearly low of 1.0496, which was reached on November 14.
Read more »