Posted 12/21/2023, 9:40:46 PM
EUR/USD Rises on Bets of Increased Fed Rate Cuts Due to Slowing US Growth and Cooling Inflation
- EUR/USD climbed above 1.1000 as markets bet on bigger Fed rate cuts due to cooling US inflation
- US Q3 GDP and core PCE inflation grew slower than expected, further fueling rate cut expectations
- Markets now expect up to 160 basis points of Fed rate cuts through 2024, far exceeding Fed's own projections
- EUR/USD testing last week's peak bids around 1.1000; faces technical resistance at November high of 1.1017
- Final US PCE inflation data due Friday; further undershoot could ramp up rate cut bets even higher