EUR/USD stages a recovery near 1.0760 amid upbeat US Dollar

EUR/USD rebounded from its three-week low at 1.0723.
ECB is expected to keep the Main Refinancing Operations Rate unchanged at 4.5% in its upcoming meeting.
Fed may maintain interest rates at 5.5% during the policy meeting on Wednesday.
Solid US labor data triggered the discussion on the duration of tightened monetary policy by the Fed.

Akhtar Faruqui FXStreet

The EUR/USD rebounds from its three-week low at 1.0723, which was recorded on Friday. The EUR/USD pair trades higher around 1.0760 during the Asian trading hours on Monday. However, the US Dollar (USD) received an upward momentum after the release of stronger economic data from the United States (US).

The US Nonfarm Payrolls for November exceeded expectations with a significant increase to 199,000, while the US Unemployment Rate dropped to 3.7% from the previous 3.9%. Meanwhile, the German Harmonized Index of Consumer Prices (YoY) remained steady at 2.3% in November, in line with expectations, with monthly figures reflecting a 0.7% decline, similar to October.

Market anticipation suggests that the European Central Bank (ECB) will maintain the Main Refinancing Operations Rate at 4.5% in its upcoming monetary policy statement on Thursday. Furthermore, expectations point toward a commencement of interest rate cuts by the ECB in March 2024.

On the other hand, speculation surrounds the future trajectory of the US Federal Reserve's (Fed) interest rates and the duration for which policy rates will remain restrictive. However, the consensus expectation is that the Fed will keep interest rates at 5.5% during the upcoming monetary policy meeting on Wednesday.

The US Dollar Index (DXY) remains strong above 104.00, supported by positive US Treasury yields. At present, the yields on 2-year and 10-year US bond coupons stand at 4.73% and 4.24%, respectively.

Investors are expected to closely monitor the US Consumer Price Index (CPI) data on Tuesday for potential market impact. Additionally, the ZEW Survey – Economic Sentiment for December will be released by Germany, adding to the market's focus.

EUR/USD: additional levels to watch

Overview
Today last price	1.0765
Today Daily Change	0.0001
Today Daily Change %	0.01
Today daily open	1.0764

Trends
Daily SMA20	1.087
Daily SMA50	1.0704
Daily SMA100	1.0764
Daily SMA200	1.0823

Levels
Previous Daily High	1.0801
Previous Daily Low	1.0724
Previous Weekly High	1.0895
Previous Weekly Low	1.0724
Previous Monthly High	1.1017
Previous Monthly Low	1.0517
Daily Fibonacci 38.2%	1.0753
Daily Fibonacci 61.8%	1.0771
Daily Pivot Point S1	1.0725
Daily Pivot Point S2	1.0686
Daily Pivot Point S3	1.0648
Daily Pivot Point R1	1.0802
Daily Pivot Point R2	1.084
Daily Pivot Point R3	1.0879

(The story was corrected at 07:10 GMT on Monday to say the yields on 2-year and 10-year US bond coupons stand at 4.73% and 4.24%, respectively.)

Author

Akhtar Faruqui

FXStreet

Akhtar Faruqui is a Forex Analyst based in New Delhi, India. With a keen eye for market trends and a passion for dissecting complex financial dynamics, he is dedicated to delivering accurate and insightful Forex news and analysis.

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