- EUR/USD rises around 1.0520 with investors focused on the ECB’s monetary policy decision at 13:15 GMT.
- The ECB is almost certain to cut its deposit facility rate by 25 basis points to 3%.
- The lack of surprises in the US CPI data solidified the Fed’s rate cut bets for next week’s meeting.
EUR/USD advances around 1.0520 in the European session on Thursday ahead of the European Central Bank (ECB) interest rate decision, which will be announced at 13:15 GMT. The ECB is widely expected to reduce its deposit facility rate by 25 basis points (bps) to 3% as price pressures in the euro zone appear to be under control and the economy continues to deteriorate. This would be the third consecutive interest rate cut by the ECB and the fourth of the year.
Investors will therefore pay close attention to ECB President Christine Lagarde’s interest rate guidance at the press conference after the monetary policy decision at 13:45 GMT.
“Fundamentals fully justify the December cut and more dovish guidance, given the deteriorating growth outlook. Underlying inflationary pressures have eased and risks of further headwinds to growth have increased following the election results in United States (US),” said Annalisa Piazza of MFS Investment Management.
Meanwhile, German Chancellor Olaf Scholz submitted a request for a vote of no confidence on December 16 to Bundestag President Bärbel Bas, a necessary precursor to holding elections on February 23, 2025, Euronews reported. The German government collapsed after Scholz fired Finance Minister Christian Lindner, dissolving the three-party coalition.
Euro PRICE Today
The table below shows the percentage change of the Euro (EUR) against the main currencies today. Euro was the strongest currency against the Swiss Franc.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | -0.09% | -0.02% | -0.23% | -0.16% | -0.54% | -0.26% | 0.19% | |
| EUR | 0.09% | 0.07% | -0.13% | -0.07% | -0.46% | -0.17% | 0.28% | |
| GBP | 0.02% | -0.07% | -0.17% | -0.15% | -0.53% | -0.24% | 0.20% | |
| JPY | 0.23% | 0.13% | 0.17% | 0.06% | -0.33% | -0.07% | 0.41% | |
| CAD | 0.16% | 0.07% | 0.15% | -0.06% | -0.38% | -0.10% | 0.35% | |
| AUD | 0.54% | 0.46% | 0.53% | 0.33% | 0.38% | 0.29% | 0.74% | |
| NZD | 0.26% | 0.17% | 0.24% | 0.07% | 0.10% | -0.29% | 0.45% | |
| CHF | -0.19% | -0.28% | -0.20% | -0.41% | -0.35% | -0.74% | -0.45% |
The heat map shows percentage changes for major currencies. The base currency is selected from the left column, while the quote currency is selected from the top row. For example, if you choose the Euro from the left column and move along the horizontal line to the US Dollar, the percentage change shown in the box will represent EUR (base)/USD (quote).
Daily Market Summary: EUR/USD rises as US dollar retreats amid dovish Fed expectations
- EUR/USD advances slightly while the US Dollar (USD) retreats in the European session on Thursday. The US Dollar Index (DXY), which tracks the value of the greenback against six major currencies, falls near 106.40 as US inflation data for November came in line with expectations, boosting dovish bets on the Federal Reserve (Fed).
- According to the Consumer Price Index (CPI), headline inflation accelerated to 2.7% from the previous release of 2.6%, and the core CPI – which excludes volatile food and energy prices – rose steadily by 3.3%.
- US inflation data boosted dovish bets on the Federal Reserve (Fed) for Wednesday’s monetary policy meeting announcement. According to the CME FedWatch tool, the probability that the Fed will reduce interest rates by 25 bps to 4.25%-4.50% next week has climbed to almost 99% from 88% on Tuesday.
- In Thursday’s US session, investors will focus on US Producer Price Index (PPI) data for November and Initial Jobless Claims data for the week ending December 6 .
Technical Analysis: EUR/USD remains sideways above key support at 1.0500
EUR/USD teeters above the psychological figure of 1.0500. The outlook for the major currency pair remains bearish as the 20-day EMA near 1.0560 acts as key resistance for Euro (EUR) bulls.
The 14-day Relative Strength Index (RSI) is teetering near 40.00. If the RSI falls below this level, bearish momentum will be triggered.
Looking down, the Nov 22 low of 1.0330 will be key support. On the other hand, the 50-day EMA near 1.0680 will be the key barrier for the Euro bulls.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
