Skip to content EURUSD Climbs from Low on ECB Rate Cut News
The euro climbed to $1.08, recovering from a nearly four-month low of $1.076. Recent data indicated that the European Central Bank (ECB) might reduce interest rates by 25 basis points in December instead of 50.
The EUR/USD 4-hour price chart below demonstrates the price, support, and resistance levels.
Eurozone Challenges Continue in October PMI
Preliminary PMI figures for October showed that the private sector in the eurozone is still shrinking, though there are some encouraging signs from Germany.
Inflation in the services industry is projected to stay elevated, with costs and prices rising faster than the previous month, likely due to ongoing wage pressures. Looking ahead, traders expect the ECB to lower rates to 2% by mid-2025, down from the current 3.25%.
In contrast, robust economic data from the US has reduced the chances of the Federal Reserve making significant rate cuts, strengthening the dollar.
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