EUR/USD holds at around 1.0860s as traders brace for the Fed and ECB’s decisions – by christianborjon EURUSD Majors Macroeconomics Technical Analysis
cemented the case for a 25 bps rate hike by the Fed. At the time of writing, the EUR/USD is trading at 1.0866.Wall Street finished the week with gains, shrugging off worries about an impending recession in the United States. Thursday’s data cemented the case for a robust economy, with Q4’s expanding by 2.9% QoQ above estimates of 2.6%, while Q3 remained at 3.2%. That sparked conversations of a possible “soft landing” by the US Federal Reserve.
In the meantime, Friday’s data revealed that inflation is cooling down, probably at a faster pace than estimated. The Fed’s favorite inflation gauge, the core Personal Consumption Expenditure was aligned with estimates of 4.4% YoY, but below November’s 4.7%. That augmented speculations around the Fed would slash the size of rate hikes, as December marked the first lift in rates not being at 75 bps. Instead, Powell and Co.
As Friday’s session ends, the CME FedWatchTool shows that odds for a Fed’s 25 bps rate hike stand at 99.2%, and traders are foreseeing the Federal Funds rate to peak at around 5%, by March’s meeting. In another tranche of data, a poll from the University of Michigan reported the US Consumer Sentiment, which improved vs. the preliminary reading of 64.6 to 64.9. Data revealed that inflation expectations for 1-year are estimated at 3.9%, lower than the previous poll, while for a 5-year, they stood at 2.9%.
Across the pond, European Central Bank officials had reiterated they would raise rates at the upcoming meeting on February 2. ECB’s President Christine
Österreich Neuesten Nachrichten, Österreich Schlagzeilen
Similar News:Sie können auch ähnliche Nachrichten wie diese lesen, die wir aus anderen Nachrichtenquellen gesammelt haben.
EUR/USD stays above 1.0900 ahead of US GDP during ECB blackoutEUR/USD bulls are in command near the nine-month high, despite recently taking a breather around 1.0915, as the major pair traders await the first rea
Weiterlesen »
EUR/USD Price Analysis: Bulls struggle below 1.0940 hurdleEUR/USD bounces off intraday low to around 1.0920 as it consolidates weekly gains, the third one in a row, ahead of the US fourth quarter (Q4) Gross D
Weiterlesen »
EUR/USD expects a gradual advance to 1.1000 – UOBUOB Group’s Economist Lee Sue Ann and Markets Strategist Quek Ser Leang note EUR/USD could have embarked on a gradual move to the 1.1000 area. Key Quo
Weiterlesen »
When is the preliminary US GDP report and how could it affect EUR/USD?The Gross Domestic Product (GDP) report for the fourth quarter, as released by the Bureau of Economic Analysis (BEA) on January 26th, will show an exp
Weiterlesen »
EUR/USD: The lower end in the pair remains unattractive – CommerzbankEUR/USD benefited from the broad US Dollar weakness and climbed above 1.0900. For now, the lower end in EUR/USD remains unattractive, in the view of e
Weiterlesen »
EUR/USD Forex Signal: Rising Wedge Pattern FormsThe EUR/USD price has formed a rising wedge pattern ahead of the upcoming American economic data.
Weiterlesen »