EURUSD Analysis – December 14 – 2023

EURUSD Analysis - December 14 - 2023
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Bloomberg – The EURUSD witnessed an uptick, crossing the $1.09 mark after the European Central Bank (ECB) announced it would maintain its interest rates at current multi-year highs, as anticipated. The ECB emphasized that these high borrowing costs are likely to persist. Notably, the bank avoided any mention of potential rate cuts for the upcoming year. President Lagarde clarified that the policymakers hadn’t discussed rate reductions, underscoring that future decisions will hinge on economic data.

In contrast, the Federal Reserve projected 75 basis points in rate cuts by 2024. Additionally, the ECB disclosed plans to expedite the conclusion of its Pandemic Emergency Purchase Programme (PEPP) bond-buying scheme. The bank aims to reduce the PEPP portfolio by an average of €7.5 billion each month in the latter half of the year.

EURUSD Analysis - December 14 - 2023

EURUSD 4H Chart