EUR/USD Holds Near 1.20, Market Still "Reading" the Fed's Direction
EUR/USD moved positively around 1.1980 at the start of Thursday's European session. The US dollar remained weak against the euro as markets were clouded by uncertainty over the direction of US economic policy. Market participants awaited the release of Eurozone Consumer Confidence and US Initial Jobless Claims later today for further clues.
Pressure on the dollar stemmed from concerns about President Donald Trump's unpredictable policy style, coupled with concerns about the Federal Reserve's independence. Trump also said he would soon announce his choice for the new Fed Chair and even suggested interest rates could drop significantly once the new leader took over—statements that further heightened market sensitivity.
Meanwhile, the Fed recently held interest rates in the 3.50%–3.75% range at its January meeting. Jerome Powell assessed that the economy remains quite solid and the labor market is stabilizing, although signs of cooling remain. Fed officials have signaled a more cautious approach to further rate cuts, with the market expecting a new rate cut to come as early as June. In Europe, the ECB is also expected to hold interest rates in February and likely maintain them until mid-2026, so market focus remains on the divergence in policy direction between the two central banks. (az)
Source: Newsmaker.id
