EUR/USD on the move again?
The EUR/USD pair moved steadily around 1.1750 during Wednesday's Asian session. Its movement appeared to be holding up after a sharp drop the previous day from its highest level since September 24th.
Despite the correction, the overall direction of EUR/USD remains bullish. Market sentiment suggests that selling pressure on the dollar is weakening, giving the euro room to hold its ground.
From the US side, the dollar's recovery following the release of the Nonfarm Payrolls (NFP) data is starting to run out of steam. The mixed labor data hasn't been strong enough to change market confidence that the Fed may still cut interest rates twice next year.
Furthermore, the market is also paying attention to the issue of a Fed leadership change. Expectations are that the candidate to replace Jerome Powell could be more dovish, making it difficult for the dollar to strengthen significantly. It was also reported that President Donald Trump will interview Fed Governor Christopher Waller, joining Kevin Hassett and Kevin Warsh in the list of candidates.
Meanwhile, in Europe, the euro was supported by the growing belief that the ECB is nearing the end of its interest rate-cutting cycle. However, market participants are still tending to wait, as Thursday's crucial ECB meeting could determine the next direction.
Today, market attention is also focused on the final Eurozone CPI release for additional clues. After that, the next focus will be on US consumer inflation data, which could move the dollar and provide new impetus for EUR/USD—whether it continues to rise or even falls again.
Source: Newsmaker.id
