EUR/USD Stays Under 1.1000 as Market Anticipates US PPI Data Release
The EUR/USD currency pair maintains its positive stance, displaying resilience against a renewed demand for the US dollar (USD) in the early Asian trading session on Friday. Currently, the major currency pair is trading at 1.0983, marking a modest gain of 0.11% for the day. This uptick is largely attributed to a risk-on sentiment prevailing in the market, as investors eagerly await key economic data from the United States.
On Thursday, the US Labor Department released data indicating that Initial Jobless Claims for the week ending January 6 had dropped to their lowest since mid-October. The figure decreased by 1,000 to 202,000, slightly down from the previous week’s revised count of 203,000. This decline suggests a strengthening labor market, a critical factor in economic assessments and monetary policy decisions.
Inflation figures also painted a notable picture. The US Consumer Price Index (CPI) for December reported a year-over-year increase of 3.4%, exceeding both the previous 3.1% reading and the market consensus of 3.2%. The Core CPI, which strips out the volatile food and energy prices, registered a 3.9% year-over-year rise in December, surpassing the expected 3.8%. These inflation metrics are closely monitored as they significantly influence the Federal Reserve’s monetary policy. Current market speculation, as per CME Group’s FedWatch tool, indicates about a 64% chance of a rate cut by the Fed in March, a slight decrease from last week’s expectations.
Read More : Daily & Weekly Analysis On Xtreamforex
The EUR/USD currency pair maintains its positive stance, displaying resilience against a renewed demand for the US dollar (USD) in the early Asian trading session on Friday. Currently, the major currency pair is trading at 1.0983, marking a modest gain of 0.11% for the day. This uptick is largely attributed to a risk-on sentiment prevailing in the market, as investors eagerly await key economic data from the United States.
On Thursday, the US Labor Department released data indicating that Initial Jobless Claims for the week ending January 6 had dropped to their lowest since mid-October. The figure decreased by 1,000 to 202,000, slightly down from the previous week’s revised count of 203,000. This decline suggests a strengthening labor market, a critical factor in economic assessments and monetary policy decisions.
Inflation figures also painted a notable picture. The US Consumer Price Index (CPI) for December reported a year-over-year increase of 3.4%, exceeding both the previous 3.1% reading and the market consensus of 3.2%. The Core CPI, which strips out the volatile food and energy prices, registered a 3.9% year-over-year rise in December, surpassing the expected 3.8%. These inflation metrics are closely monitored as they significantly influence the Federal Reserve’s monetary policy. Current market speculation, as per CME Group’s FedWatch tool, indicates about a 64% chance of a rate cut by the Fed in March, a slight decrease from last week’s expectations.
Read More : Daily & Weekly Analysis On Xtreamforex