EUR/USD is ready for a bullish sprint towards 1.0830!

11 дек. 2023 г.

The EUR/USD cross experienced a rebound, rising from its recent low at 1.0723 observed last Friday. During the Asian trading hours on Monday, the pair demonstrated strength, trading higher around 1.0760. The US Nonfarm Payrolls for November exceeded expectations, recording a significant increase of 199,000 jobs, while the unemployment rate dropped to 3.7% from the previous 3.9%. Meanwhile, in Germany, the Harmonized Index of Consumer Prices (YoY) remained stable at 2.3% in November, in line with expectations. Looking ahead, market expectations suggest that the European Central Bank (ECB) will maintain the Main Refinancing Operations Rate at 4.5% in its upcoming monetary policy statement on Thursday. Conversely, attention is focused on the future trajectory of the United States Federal Reserve's (Fed) interest rates and the anticipated duration of restrictive interest rates. The prevailing consensus is that the Fed will keep interest rates steady at 5.5% during the upcoming monetary policy meeting on Wednesday. The US Dollar Index (DXY) remains robust, staying above 104.00, supported by positive US Treasury yields. Currently, the yields on 2-year and 10-year US bond coupons are at 4.24% and 4.73%, respectively. Investors are closely watching the US Consumer Price Index (CPI) data scheduled for release on Tuesday, anticipating its potential impact on the market. Additionally, market attention will turn to Germany with the release of the ZEW Survey – Economic Sentiment for December.