EUR/USD remains unchanged on Thursday due to low trading liquidity, as US markets are closed for Thanksgiving. Ongoing expectations regarding a potential reduction in borrowing costs by the Federal Reserve continue to exert pressure on the Greenback, while the Euro appears set to conclude the week with gains. The pair is currently positioned at 1.1596.
EUR/USD remains stable as subdued US inflation, disappointing retail sales, and declining confidence enhance expectations for a Federal Reserve rate cut. Reports indicate an 85% probability of a 25-bps reduction, although strong jobless claims constrain a complete dovish stance. Consumer confidence in the Eurozone shows a modest uptick, yet ECB officials remain prudent in their outlook despite the more positive sentiment among households.
> Euro remains stable in a subdued Thanksgiving session, bolstered by increasing anticipation of a Fed rate cut in December : In the absence of significant US economic events on Thursday, the latest inflation data, subdued retail sales, and diminishing consumer confidence are intensifying the pressure on the Federal Reserve. A source indicates an 85% probability of a 25-basis point rate reduction. The likelihood increased as Federal Reserve officials adopted a more accommodative stance, spearheaded by New York Fed President John Williams, in the previous week. However, the latest Initial Jobless Claims report for the week ending November 21, surprised the markets as the number of Americans filing for unemployment insurance dipped below estimates and the previous print. In the Eurozone, recent economic indicators reveal a slight uptick in Consumer Confidence, as households demonstrate a readiness to increase spending in anticipation of the forthcoming Christmas season. Officials from the European Central Bank maintained a dovish stance, with ECB Kazaks stating that it is not the appropriate moment to reduce rates.
Latest FX Rate Trends : Euro set to continue its upward trajectory as Dollar shows signs of weakness
- The Eurozone Consumer Confidence reached an eight-month peak at -14.2 in November, remaining steady from October. The survey indicated an increase in confidence within the services, retail trade, and construction sectors, although this was somewhat counterbalanced by a decline in the industrial sector.
- The flow of economic data in the US persists, while dovish remarks from Fed officials are influencing the price movement of EUR/USD. The number of Americans applying for jobless insurance has declined compared to November’s 14 print, reinforcing the prevailing low-firing, low-hiring environment noted by various Fed policymakers.
- The US Dollar Index, which monitors the dollar’s performance against six currencies, remains unchanged at 99.57.