EUR/USD news today - EUR/USD failed to hold above the psychological support of 1.0500. The major currency pair is struggling to maintain control amid the current market conditions. Anxiety is mounting over the US economic recession forcing investors to seek refuge behind the US Dollar. Meanwhile, EUR/USD news today concerns the common currency bulls worried ahead of the European Central Bank (ECB) President Christine Lagarde’s speech scheduled for Thursday. The US Dollar Index (DXY) extended its recovery ahead of the confusing resistance at 105.40. The S&P 500 Futures continue to move sideways as the upside is capped by a surge on recession fears.



U.S. Treasury yields have recovered as the Fed prepares for a rate hike next week. The 10-year U.S. Treasury yield rose to 3.74% after falling to near 3.40%.

EUR/USD News Today - Fed Policy Uncertainty Muddles Market Mood

The market mood has recently been mixed as investors are torn between supporting the strength of the US economy against a tight labor market and strong demand in the services sector. Upbeat labor demand suggests inflationary pressures remain on the back of strong demand for higher-wage labor. That would leave more cash in the hands of households, which would lead to higher retail demand due to future inflation.

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Therefore, Fed policymakers are pushing for a higher interest rate peak rather than the current rate hike pace to minimize inflation chaos. Expectations of a higher neutral rate have raised recession fears.

US Dollar Expected to Continue Declining

The expansion of US economic recession fears has set a bullish foundation for the US Dollar in the short term. As long as the Fed remains hawkish, the US Dollar will remain strong, according to an ING report. The current recession fears have created a positive environment for the Dollar and a negative environment for pro-cyclical commodity currencies. Economists at the National Bank of Canada believe that the greenback could recover in the near term. A different opinion is that the FOMC policy decision in the first quarter of 2023 will set the stage for a prolonged downturn.

EUR/USD News Today - European Central Bank President Cuts Rate Policy Uncertainty

Eurozone inflation has shown a decline in November data. However, a one-time slowdown in inflation is not enough to call for a policy change, but requires a continuous slowdown in inflation reports over several months. A survey conducted by the European Central Bank said that 12-month inflation expectations have increased to 5.4% from the previous data of 5.1%. That is the information we share regarding today's EUR/USD news information. Keep up to date with information related to investment and other forex trading through the GIC journal every day. Of course, you can also trade through the GICtrade application with the new ECN account feature, enjoy your trading with the lowest spread prices starting from 0 Rupiah! You also have the opportunity to get a chance to win billions of Rupiah without being drawn through the GIC Gebyar Hadiah.

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