- EUR/USD consolidates in a range just above a two-year low touched earlier this month.
- The ECB’s dovish outlook is seen undermining the shared currency amid a bullish USD.
- Traders await the US PCE data – the Fed’s preferred inflation gauge – for some impetus.
The EUR/USD pair continues with its struggle to attract any meaningful buyers and oscillates in a range around the 1.0360 area during the Asian session on Friday. Spot prices remain close to a near-one-month low touched on Thursday and seem poised to register its lowest weekly close since November 2022.
Moreover, the shared currency might continue with its relative underperformance on the back of the divergent European Central Bank (ECB) and the Federal Reserve (Fed) monetary policy outlook. In fact, the ECB cut interest rates for the fourth time this year last Thursday and left the door open to further easing in 2025. In contrast, the Fed signaled earlier this week that it would slow the pace of rate cuts in 2025. This, in turn, suggests that the path of least resistance or the EUR/USD pair is to the downside.
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