EUR/USD Nears 1.1000 Amid Central Bank Decisions and Economic Data Releases
In the early Asian session on Friday, the EUR/USD pair is experiencing a surge of momentum, approaching the key 1.1000 level. Following the European Central Bank’s (ECB) anticipated decision to keep rates unchanged, the Euro garnered buyer interest, nudging the EUR/USD pair upwards.
The pair is currently trading around 1.0993, marking a slight 0.01% increase for the day.The ECB’s decision to maintain its key interest rates unchanged was in line with market expectations, with the main refinancing operations at 4.50%, the marginal lending facility at 4.75%, and the deposit facility at 4.00%.
Contrary to some market expectations for rate cuts, the ECB emphasized the need to keep borrowing costs at elevated levels, citing persisting price pressures despite a dip in inflation forecasts.Conversely, the US Federal Reserve’s decision to hold the fed funds rate steady at 5.25%–5.50% also influenced market dynamics.
Comments from Fed Chairman Jerome Powell and projections of three rate cuts in the coming year contributed to the weakening of the US Dollar.Recent US economic data, including a stronger-than-expected 0.3% growth in November Retail Sales and a decline in Initial Jobless Claims to 202,000, failed to bolster the Dollar.
Investors are seemingly more focused on digesting the Federal Reserve’s monetary policy stance and the anticipated rate cut next year.Looking ahead, market participants are turning their attention to upcoming economic releases, including the preliminary HCOB PMI reports from France, Germany, and the Eurozone, with the Eurozone HCOB Composite PMI expected to rise slightly.
In the US, data such as the S&P Global PMI, Industrial Production, and NY Empire State Manufacturing Index will be closely monitored later in the day.
EUR/USD Technical Outlook
The EUR/USD pair has resumed its upward trajectory, breaking past the 1.0960 level and reinforcing the bullish trend in both the intraday and short-term contexts.
This breach opens the pathway towards a target of 1.1080. However, the sustainability of this bullish wave is contingent upon the pair maintaining stability above the 1.0960 level.
EUR/USD Live Chart
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