EURUSD Analysis – January-2-2024

EURUSD Analysis - January-2-2024
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The EURUSD strengthened above $1.1 at the end of 2023, up nearly 4% for the year and touching its highest level since July 19th, on expectations that the Federal Reserve will start cutting rates earlier than the European Central Bank.

Euro Rises Above $1.1: Rate Cuts Expected in 2024

Markets reflect an approximately 80% likelihood of a reduction in the Fed funds rate starting in March 2024, with an expectation of over 150 basis points of cuts throughout the following year. The European Central Bank is also anticipated to trim borrowing costs in the next year, albeit slower than the Federal Reserve, despite efforts from ECB policymakers to adopt a more hawkish stance.

EURUSD Analysis - January-2-2024

EURUSD Analysis – 4H Chart