EURUSD Analysis – December-18-2023

EURUSD Analysis - December-18-2023
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Reuters – Investors have closely observed the EURUSD‘s performance, persistently below the $1.1 level. This trend unfolds against various central bank decisions made last week and the latest PMI data insights. On Thursday, the European Central Bank opted to keep interest rates unchanged, defying the expectations of a rate decrease. ECB President Lagarde emphasized that reducing borrowing costs was not on the table, and future decisions will be firmly anchored to incoming data.

In contrast, the US Federal Reserve indicated on Wednesday a potential conclusion to its unprecedented monetary tightening, suggesting the possibility of three rate reductions in 2024. In addition, the market is assimilating PMI statistics from Europe, which were below expectations and indicated a significant downturn in the Eurozone’s private sector activities for December.

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