- EUR/USD holds positive ground near the 1.1000 barrier amid the USD weakness.
- The European Central Bank (ECB) maintained the current key interest rates unchanged on Thursday.
- US Retail Sales came in better than expected, climbing 0.3% in November from a 0.2% drop in October.
- Investors await the preliminary Eurozone HCOB PMI and US S&P Global PMI reports.
The EUR/USD pair gains momentum near the 1.1000 mark during the early Asian session on Friday. As widely expected, the European Central Bank (ECB) held the rate unchanged on Thursday. In response to the ECB's decision, the Euro (EUR) attracted some buyers and lifted the EUR/USD pair. The pair currently trades around 1.0993, up 0.01% on the day.
The ECB decided to maintain the current key interest rates, with no changes to the main refinancing operations at 4.50%, the marginal lending facility at 4.75%, and the deposit facility at 4.00%, as widely expected. The central bank pushed back against bets on rate cuts on Thursday, highlighting that borrowing costs would remain at record highs despite lower inflation expectations and price pressure.
On the other hand, the US Federal Reserve held its benchmark fed funds rate range steady at 5.25%–5.50% on Wednesday. However, dovish remarks from Fed Chairman Jerome Powell and Fed officials’ projections about three rate cuts next year, dragged the Greenback lower across the board.
On Thursday, US Retail Sales came in better than market expectations, growing 0.3% in November from a 0.2% drop in the previous reading. Additionally, the Initial Jobless Claims in the week ending December 9 arrived at 202,000 versus the previous week's print of 221,000, above the market consensus of 220,000. Continuing Claims rose by 20,000 to 1.876 million in the week ended December 2. The upbeat US data failed to lift the Greenback as investors digest the outcome of the Fed monetary policy meeting and the anticipation of the rate cut next year.
Moving on, market participants will focus on the preliminary HCOB PMI report from France, Germany, and the Eurozone. The Eurozone HCOB Composite PMI preliminary reading is expected to show an increase from 47.6 to 48.0. On the US docket, the US S&P Global PMI, Industrial Production, and NY Empire State Manufacturing Index will be due later on Friday.
(This story was corrected on December 15 at 00:42 GMT to say that market participants will focus on the preliminary HCOB PMI report, not the HICP report)
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD stays defensive below 1.1050, as US NFP data looms
EUR/USD stays defensive below1.1050 in the European morning on Friday. The pair lacks a clear directional impetus, as traders refrain from placing fresh bets ahead of the key US Nonfarm Payrolls data. The focus remains on ECB-speak as well.
GBP/USD recovers to near 1.3150 ahead of US NFP data
GBP/USD has recovered ground to near 1.3150 heading into the European opening bells on Friday. The further upside, however, appears elusive, as traders brace for the highly-anticipated US Nonfarm Payrolls data for fresh cues on the Fed interest rate outlook.
Gold: Will US Nonfarm Payrolls drive XAU/USD to fresh record highs?
Gold price extends a side trend below the key $2,670 resistance amid the Israel-Iran conflict. The US Dollar eases off six-week highs, as traders reposition ahead of the Nonfarm Payrolls data.
Nonfarm Payrolls set to grow moderately in September as markets mull bets of another big Fed rate cut
Economists expect the Nonfarm Payrolls report to show that the US economy added 140,000 jobs in September, following a job gain of 142,000 reported in August.
RBA widely expected to keep key interest rate unchanged amid persisting price pressures
The Reserve Bank of Australia is likely to continue bucking the trend adopted by major central banks of the dovish policy pivot, opting to maintain the policy for the seventh consecutive meeting on Tuesday.
Five best Forex brokers in 2024
VERIFIED Choosing the best Forex broker in 2024 requires careful consideration of certain essential factors. With the wide array of options available, it is crucial to find a broker that aligns with your trading style, experience level, and financial goals.