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Daily analysis for EUR/USD

01 Dec,2023
Daily analysis for EUR/USD

The euro against the dollar witnessed additional negative trading yesterday, approaching the level of 1.0860, but the euro's movement began to recover in today's trading, which supports the possibility of a return to the upward trend, approaching the level of 1.0960, but according to the MACD indicator, there is a possibility of a gradual decline.

 

The preliminary annual consumer price index for November was released yesterday as it has dropped more than expected reaching 2.4%  and falling short of market expectations of a 2.7% gain.

As a result, these data show that inflationary pressures on monetary policymakers at the European Central Bank have continued to fall, supporting the hypothesis that the current cycle of raising European interest rates has ended, putting downward pressure on the euro's price in the foreign exchange market.

While the President of the German Central Bank and a member of the European Central Bank's Board of Directors have remarked that recent inflation trends are promising, the European Central Bank is not pleased and believes that it is too early to talk interest rate decreases.

The dollar index lost more than 0.2% on Friday, continuing losses that were suspended for two sessions, since this dip comes before Federal Reserve Chairman Jerome Powell speaks twice today at different times, knowing that his views are expected. To wit: There is a lot of data concerning the future trajectory of monetary policy and interest rates in the United States, therefore all eyes are on its closing today.

*All data provided is intended for educational or informational purposes only and should not be considered investment advice.

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