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EUR/USD Halts Bullish Attempt, Drops Back to Negative Levels
Wednesday, 18 December 2024 07:16 WIB | EUR/USD |EUROPE Euro

The bullish momentum behind the Euro evaporated on Tuesday, dragging the pair back below the 1.0500 level as traders prepare for the Federal Reserve's (Fed) final interest rate decision in 2024. European data was relatively light this week, forcing Fiber traders to navigate a slew of US data.

The Euro market largely ignored the appearances of several European Central Bank (ECB) officials earlier in the week, and despite December's European PMI figures beating expectations. The pan-EU Services PMI survey figures remained in contraction as concerns over a deepening economic slowdown in Europe continued to unsettle investors and businesses.

The US Retail Sales figures surged higher to 0.7% MoM, sparking slight concerns among investors that perhaps the Fed may not need to pursue an aggressive rate-cutting strategy, especially when taking into account the recent uptick in inflation metrics. Nevertheless, markets are still pricing in a third straight rate cut by the Fed on Wednesday, with a 95% chance of a 25 bps rate cut according to the CME's FedWatch Tool.

 Source: FXStreet

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