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.

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

 

 

Share: Feed news

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


Recommended content

Editors’ Picks

EUR/USD flirts with 1.0700 post-US PMIs

EUR/USD flirts with 1.0700 post-US PMIs

EUR/USD maintains its daily gains and climbs to fresh highs near the 1.0700 mark against the backdrop of the resumption of the selling pressure in the Greenback, in the wake of weaker-than-expected flash US PMIs for the month of April.

EUR/USD News

GBP/USD surpasses 1.2400 on further Dollar selling

GBP/USD surpasses 1.2400 on further Dollar selling

Persistent bearish tone in the US Dollar lends support to the broad risk complex and bolsters the recovery in GBP/USD, which manages well to rise to fresh highs north of 1.2400 the figure post-US PMIs.

GBP/USD News

Gold trims losses on disappointing US PMIs

Gold trims losses on disappointing US PMIs

Gold (XAU/USD) reclaims part of the ground lost and pares initial losses on the back of further weakness in the Greenback following disheartening US PMIs prints.

Gold News

Here’s why Ondo price hit new ATH amid bearish market outlook Premium

Here’s why Ondo price hit new ATH amid bearish market outlook

Ondo price shows no signs of slowing down after setting up an all-time high (ATH) at $1.05 on March 31. This development is likely to be followed by a correction and ATH but not necessarily in that order.

Read more

Germany’s economic come back

Germany’s economic come back

Germany is the sick man of Europe no more. Thanks to its service sector, it now appears that it will exit recession, and the economic future could be bright. The PMI data for April surprised on the upside for Germany, led by the service sector.

Read more

Forex MAJORS

Cryptocurrencies

Signatures