💲 USD recovers from post-FOMC weakness
US dollar has been hit hard by FOMC earlier this week. New dot-plot suggesting three 25 basis point rate cuts in 2024 sparked a rally on US equity markets and caused USD to lose ground, and EURUSD to gain. The upward move on EURUSD was extended yesterday on the back of a rather hawkish ECB meeting. As a result, the main currency pair jumped around 2% over two days - from below 1.08 on Wednesday to above 1.10 yesterday. However, a quick reversal occurred today with EURUSD now testing the 1.09 mark. What is driving the move lower today?
- Flash PMIs for December from European countries disappointed
- German services PMI dropped to 48.4 (exp. 49.6) while manufacturing PMI climbed to 43.1 (43.4)
- French services PMI dropped to 44.3 (exp. 46.0) while manufacturing PMI dropped to 42.0 (exp. 43.2)
- On the other hand, US services PMI climbed from 50.8 to 51.3 (exp. 50.5)
EURUSD is approaching a support zone in the 1.09 area. Interestingly, TNOTE remains at elevated levels and does not justify today's USD strengthening.
Start investing today or test a free demo
Create account Try a demo Download mobile app Download mobile app
Source: xStation5
This content has been created by XTB S.A. This service is provided by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, entered in the register of entrepreneurs of the National Court Register (Krajowy Rejestr Sądowy) conducted by District Court for the Capital City of Warsaw, XII Commercial Division of the National Court Register under KRS number 0000217580, REGON number 015803782 and Tax Identification Number (NIP) 527-24-43-955, with the fully paid up share capital in the amount of PLN 5.869.181,75. XTB S.A. conducts brokerage activities on the basis of the license granted by Polish Securities and Exchange Commission on 8th November 2005 No. DDM-M-4021-57-1/2005 and is supervised by Polish Supervision Authority.
