EURUSD Analysis – November-24-2023

EURUSD Analysis - November-24-2023

The EURUSD pair has showcased a commendable resilience, maintaining its position above the $1.09 mark. This steadfastness propels the currency towards its highest valuation since the latter part of August. This performance comes in the wake of the European Central Bank (ECB) releasing minutes from its latest meeting.

EURUSD Analysis - November-24-2023

EURUSD Technical Analysis – 4H Chart

A notable aspect of these minutes is the ECB policymakers’ emphasis on the potential for further interest rate hikes. While a hike isn’t their immediate plan, keeping this option open signals a strategic readiness to adapt to changing economic scenarios. This stance provides a glimpse into the central bank’s approach to monetary policy shortly.

Complementing this scenario is the latest Purchasing Managers’ Index (PMI) survey. The survey reveals a slowing down in the contraction of Eurozone business activities for November. However, this comes alongside a decrease in employment levels, a trend not seen since the early months of 2021. Adding to this mixed bag is the six-month peak in input cost inflation, which could signal rising business expenses.

Reuters – Earlier in the week, ECB policymaker Mario Centeno’s dovish (cautious) comments contrasted Joachim Nagel’s remarks. Nagel hinted that interest rates might be nearing their maximum limit. Furthermore, ECB President Christine Lagarde cautioned against premature celebrations, indicating cautious optimism in the face of uncertain economic trends.