EUR/USD Steady Amid Complicated US Economy and ECB Outlook
The EUR/USD currency pair remained stable around 1.1580 after strengthening for five consecutive days. The euro was supported by market expectations that the European Central Bank (ECB) would likely maintain interest rates for the time being, as the European economy is showing stable performance and inflation is nearing target. Investors await German inflation data, such as the Consumer Price Index (CPI) and the Harmonized Index of Consumer Prices (HICP), to assess the ECB's next policy direction.
Meanwhile, the US dollar also remained strong due to optimism over the reopening of the government after the shutdown. The US Senate has approved a bill to end the government shutdown, and the House of Representatives is scheduled to vote on it, which, if approved, will soon be signed by the US President. This reopening of the government will allow for payroll payments and the release of important economic data, providing positive sentiment for the dollar.
However, the dollar's strength was not entirely smooth. ADP employment data showed lower-than-expected job creation, with an average loss of 11,250 jobs per week compared to 14,250 previously. This has increased market expectations for a possible interest rate cut by the Federal Reserve in December, which could put pressure on the dollar's value in the future. The market is currently in a state of balancing the strength of the euro and the dollar. (az)
Source: Newsmaker.id
