The post EUR/USD slides lower on increasing pessimism about European economy, tighter Fed, USD haven flows appeared on BitcoinEthereumNews.com.

EUR/USD is declining on Thursday as the Euro weakens on the back of a worsening growth outlook.  A stronger US Dollar is speeding its ascent amid falling market bets of another aggressive rate cut from the Fed.  USD is further strengthening from haven flows as the conflict in the Middle East intensifies.  EUR/USD trades in the 1.1030s on Thursday, about a tenth of a percent down on the day as geopolitical risks increase demand for the safe-haven US Dollar (USD) while the Euro (EUR) weakens amid a gloomy economic outlook for the old continent.  EUR/USD slides on tighter Fed, haven flows EUR/USD opens Thursday on the back foot after closing lower for three consecutive days. A single Euro now will buy almost two cents less than it did at the start of the week. The Euro is weakening after lower-than-expected inflation data for September brings the official headline rate of inflation in the Eurozone to 1.8%, the first time it has fallen below the European Central Bank’s (ECB) target of 2.0% in 39 months. The data increases the chances the ECB will cut interest rates more aggressively, which, in turn, would be negative for the Euro as it discourages foreign capital inflows.   In the US, conversely, market bets are falling that the US Federal Reserve (Fed) will follow up their “jumbo” 50 basis points (0.50%) cut with an equal-sized cut in November, and this is supporting the US Dollar.  Strong US jobs data is helping to reassure investors that the US economy will not experience a hard landing. JOLTS Job Openings rose to 8.04 million in August from a revised-up 7.71 million in July, and ADP Employment Change – an estimate of private payrolls growth – came out at 142K in September, beating the previous month’s 103K and expectations of…

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Filed under: News - @ October 3, 2024 8:25 am