EUR/USD consolidates at start of the week with Fed officials supporting fewer rate cuts
The post EUR/USD consolidates at start of the week with Fed officials supporting fewer rate cuts appeared on BitcoinEthereumNews.com.
EUR/USD trades in a tight range as volumes thin out due to fewer trading days this week amid holidays on account of Christmas Eve and Boxing Day. The Fed sees fewer interest rate cuts in 2025 as the disinflation process stalls and amid increasing uncertainty over Trump’s policies. ECB Lagarde said she believes that a victory over inflation is near. EUR/USD trades quietly at the start of the week around 1.0440 in Monday’s European session. The major currency pair trades in a limited range amid thin trading volume in a holiday-shortened week due to Christmas Eve and Boxing Day on Wednesday and Thursday, respectively. The US Dollar (USD) steadies on Monday after a sharp sell-off on Friday that was triggered by slower-than-expected growth in the United States (US) Personal Consumption Expenditure Price Index (PCE). The US Dollar Index (DXY), which tracks the Greenback’s value against six major currencies, wobbles below 108.00. Core PCE inflation, which is the Federal Reserve’s (Fed) preferred inflation gauge, rose steadily by 2.8% but slower than estimates of 2.9%. Month-on-month, headline, and core PCE inflation grew marginally by 0.1%, which raised some uncertainty over whether the Fed will follow a shallow rate-cut path in 2025. Fed policymakers see the central bank delivering fewer interest rate cuts next year amid a slowdown in the disinflation process and the uncertainty over the impact on the economy of incoming immigration, trade, and tax policies by President-elect Donald Trump. Cleveland Fed President Beth Hammack, the only official who voted for leaving interest rates unchanged in the policy meeting last Wednesday, said on Friday that she prefers to hold interest rates steady “until the Fed gets further evidence that inflation is resuming its path to its 2% objective,” Reuters reported. On Friday, Chicago Fed President Austan Goolsbee told in an interview with…
Filed under: News - @ December 23, 2024 8:18 am