EUR/USD holds above the 1.1100 mark, US Jobless Claims data eyed

EUR/USD drifts higher to the highest since July above 1.1100 on Thursday.
The evidence of cooling inflation helped to convince policymakers about the rate cuts next year.
Lagarde added that the ECB should not lower the guard and central bank’s policy decisions are data-dependent.
Market players will monitor the US weekly Jobless Claims, Trade Balance, and the November Pending Home Sales report on Thursday.

Lallalit Srijandorn FXStreet

The EUR/USD pair extends the rally above the 1.1100 psychological mark during the early Asian session on Thursday. The weaker US Dollar (USD) broadly lends some support to the major pair. At press time, EUR/USD is trading at 1.1109, up 0.03% on the day. Traders enter holiday mode, and the market is likely to be calm this week.

The potential rate cut next year from the Federal Reserve (Fed) continues to support a risk rally and boost the Euro (EUR) to its highest since July. The evidence of cooling inflation helped to convince policymakers about the rate cuts next year, despite Fed officials having been hesitant to declare victory. Investors expect the Fed to hold the rates at its upcoming January meeting and have fully priced in a rate cut in March and May 2024 meetings, according to the CME FedWatch Tol.

On the Euro front, European Central Bank (ECB) President Christine Lagarde delivered rather hawkish comments in her latest press conference. Lagarde pushed back against market expectations on interest rate cuts by saying that the Eurozone inflation pressures are easing as expected, but wage growth is still strong and the outlook is especially uncertain. Lagarde added that the ECB should not lower the guard, and the central bank’s policy decisions are data-dependent and not influenced by market pricing or time-bound pressures.

Traders will keep an eye on the US weekly Jobless Claims, Trade Balance and the November Pending Home Sales report, due on Thursday. Amidst the holiday season's thin trading, the risk sentiment and the ongoing adjustments in central bank policies are expected to continue influencing EUR/USD movements.

EUR/USD

Overview
Today last price	1.111
Today Daily Change	0.0068
Today Daily Change %	0.62
Today daily open	1.1042

Trends
Daily SMA20	1.0896
Daily SMA50	1.0798
Daily SMA100	1.0756
Daily SMA200	1.084

Levels
Previous Daily High	1.1045
Previous Daily Low	1.1009
Previous Weekly High	1.104
Previous Weekly Low	1.0892
Previous Monthly High	1.1017
Previous Monthly Low	1.0517
Daily Fibonacci 38.2%	1.1031
Daily Fibonacci 61.8%	1.1023
Daily Pivot Point S1	1.1019
Daily Pivot Point S2	1.0996
Daily Pivot Point S3	1.0983
Daily Pivot Point R1	1.1055
Daily Pivot Point R2	1.1068
Daily Pivot Point R3	1.1092

Author

Lallalit Srijandorn

FXStreet

Lallalit Srijandorn is a Parisian at heart. She has lived in France since 2019 and now becomes a digital entrepreneur based in Paris and Bangkok.

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