EUR Euro – Dollar remains stable after hawkish Fed rate cut

The U.S. dollar hovered near a two-year high on Thursday, with the U.S. dollar index hitting a high of 108.48, the highest level since November 2022, while other major currencies generally fell; the Federal Reserve cut interest rates on Wednesday night and issued a signal that the trajectory of monetary policy easing in 2025 will be A lot of slowing down signals. Data released on Thursday showed that the final value of the U.S. gross domestic product (GDP) in the third quarter grew by 3.1% year-on-year, stronger than expected, which also helped the dollar to continue its strength. In addition, the number of initial unemployment claims fell to 220,000 last week, a larger-than-expected drop. The Bank of Japan kept interest rates steady on Thursday as expected, but the yen fell sharply as Bank of Japan Governor Kazuo Ueda did not reveal much in his post-meeting press conference.

As can be seen from the technical chart, the RSI and stochastic index have just rebounded from the oversold area. It is expected that the euro can stabilize again in the short term, and 1.05 will be paid attention to in the near future. In addition, after the exchange rate fell in early November, the subsequent rebounds were also constrained by the 1.06 mark, which will be regarded as an important resistance at present. The larger resistance is expected to be 1.0730 and 1.08 levels. The support level will first look at the 1.0340 level, and then the support will be seen at the 1.0280 and 1.02 levels.

Estimated range:
Resistance 1.0500 – 1.0600 - 1.0730 – 1.0800
Support 1.0340 – 1.0280 – 1.0200

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Eurozone HICP fell 0.3% in November from the previous month and rose 2.2% from the same period last year

Focus:
Friday: Eurozone December consumer confidence index (23:00)

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