The EUR/USD pair edged higher after a sharp decline triggered by the Federal Reserve's hawkish rate cut. While US economic data reinforces the Fed's stance, a stock market rally offers some support for the euro.
EUR/USD Current price: 1.0409 United States annualized growth was upwardly revised in Q3 to 3.1% The Federal Reserve 's hawkish cut maintains the US Dollar near fresh multi-week highs. EUR/USD recovery seems corrective, near-term picture supports another leg lower. The EUR/USD pair trimmed part of the Fed-inspired losses and traded in the 1.0410 price zone ahead of the American opening on Thursday. The pair fell to 1.
0343 following the United States (US) Federal Reserve (Fed) monetary policy announcementon Wednesday. The Fed decided to cut the benchmark interest rate by 25 basis points (bps) as expected, delivering alongside a quite hawkish message heading into the new year. Additionally, the Summary of Economic Projections (SEP) showed policymakers decided to scale back the number of cuts they expect to make next year. Officials also project a strong economy but do not see inflation reaching their 2% goal until 2027. Ten out of the seventeen voting members foresee two rate cuts in 2025, while three members estimated just one trim. Even further, Chairman Jerome Powell said the decision was a “close call” as some voting members would prefer to leave rates unchanged. Wall Street collapsed with the hawkish cut, leading to losses among its overseas counterparts on Thursday. Data-wise, the EU published the October Current Account, which posted a seasonally adjusted surplus of €26 billion, missing the expected €33.5 billion. Across the pond, the United States released the final Q3 Gross Domestic Product (GDP) estimate, which suffered an upward revision. Annualized growth was confirmed at 3.1%, against the 2.8% previously estimated. Meanwhile, Initial Jobless Claims for the week ended December 13 declined to 220K from 242K in the previous week, also beating the expected 230K. The figures confirmed the Fed’s stance. EUR/USD short-term technical outlook US data initially backed the Greenback, but an uptick in stocks helps EUR/USD to remain afloa
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