EUR/USD advances modestly on stronger odds of Fed easing
EUR/USD treads water on Monday, registering modest gains of more than 0.10%, as the US Dollar (USD) consolidates despite dovish comments by Federal Reserve (Fed) officials. Although expectations for a rate cut increased, the pair trades at 1.1525 after hitting a daily high of 1.1550.
Euro posts modest gains as markets price a higher chance of a December rate cut
Last week, US economic data showed that the labor market is not as bad as expected, with Nonfarm Payrolls for September rising by 119,000 vs. 50,000 expected. Even though the week ended with mixed readings of the University of Michigan Consumer Sentiment and from S&P Global Flash PMIs, the economy remains resilient.
The Federal Open Market Committee (FOMC) is split, yet comments from Fed officials increased the odds that the Federal Reserve could reduce borrowing costs at the December 9-10 meeting.
Recently, Fed Governor Christopher Waller revealed that the weakness in the job market warrants further easing in December, but that he’s unsure about January. Last Friday, New York Fed John Williams also opened the door for a rate cut.
Ahead this week, traders eye the release of economic data, particularly the Producer Price Index (PPI) and Retail Sales, followed by Wednesday’s Initial Jobless Claims, moved in observance of the Thanksgiving holiday.
Source : Fxstreet.com
