EUR/USD pressured as USD gains traction on uneven data and Fed divide
EUR/USD posts moderate losses during the North American session on Friday as the US Dollar (USD) holds firm after the release of mixed economic data and dovish comments by Federal Reserve (Fed) officials. The pair trades at 1.1504, down 0.20%, after hitting a two-week low of 1.1491.
Data in the US was mixed, yet the economy shows signs of resilience. The S&P Global Manufacturing and Services PMIs were mixed in November but revealed that business confidence had improved.
Other data showed that American households turned pessimistic about the economic outlook, according to the University of Michigan (UoM) Consumer Sentiment for November. Sentiment hit its lowest level since 2009, as consumers remain frustrated about high prices and weakening incomes.
After the data, the EUR/USD’s reaction was muted, as traders digested mixed comments from many Federal Reserve officials.
Dovish comments from New York Fed President John Williams and Governor Stephen Miran boosted investor expectations for a 25-basis-point rate cut at the December meeting. Conversely, Boston Fed President Susan Collins and Dallas Fed President Lorie Logan argued for maintaining a restrictive policy stance, signaling support for keeping rates unchanged.
Given the backdrop, market participants had priced in a 71% chance of a December rate cut, a sharp jump from around 31% earlier in the day.
Source : Fxstreet.com
