Skip to content EURUSD Fundamental Analysis – 17-October-2024
The Euro has fallen below $1.088 resistance, hitting its lowest point in over two months, due to differing monetary policies between the European Central Bank (ECB) and the US Federal Reserve.
The ECB plans to lower its deposit rate by 25 basis points this Thursday, continuing a pattern of rate cuts from September and June. This move is in response to the recent slowdown in inflation across the Eurozone, which fell to 1.8%—the lowest rate since April 2021.
The EUR/USD 4-hour chart below demonstrates the price, support, and resistance levels.
ECB Rate Cuts vs. US Monetary Stability
Market participants expect the ECB to continue lowering rates at every meeting until March, reflecting their ongoing efforts to manage reduced inflation levels.
Meanwhile, unexpectedly strong job and inflation figures in the US have led to fewer predictions of significant rate reductions by the Federal Reserve. This stability in US economic policy is keeping the Euro under pressure.
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