Skip to content EURUSD Fundamental Analysis – 21-October-2024
Despite a slight increase, the euro is poised for its third consecutive week of declines, trading at $1.086. This trend comes as financial markets anticipate further rate reductions from the European Central Bank (ECB).
The ECB has cut interest rates three times this year due to better inflation management. However, they also acknowledge deteriorating economic conditions in the eurozone.
The EUR/USD 4-hour chart below demonstrates the price, support, and resistance levels.
Market Reactions to ECB Policies
After ECB President Christine Lagarde commented on the economic challenges, investors adjusted their expectations, now foreseeing a rate decrease of 25 basis points at each upcoming meeting until mid-2025. The possibility of a 50 basis points cut in December is also speculated to be about 25%.
Contrary to the eurozone, the U.S. has recently shown robust economic figures. This strength has reduced the Federal Reserve’s predictions of significant rate cuts.
About The Author
Comments are closed.