On Thursday, the EUR/USD currency pair increased by 0.41% in North America following a decision by the Federal Reserve to lower interest rates and release disappointing employment figures. At that moment, the pair was trading at 1.1742, recovering from a daily low of 1.1682.
Euro appreciates as Fed signals dovish stance amid weak U.S. job data, raising further easing expectations
The latest U.S. economic indicators were a bit mixed, showing an uptick in unemployment insurance claims, which suggests potential job market weaknesses. Interestingly, the U.S. Census Bureau reported a narrowing in the trade deficit for September.
Earlier, the Fed reduced its policy rate by 25 basis points, lowering it to 3.75% from 3.50%. Nevertheless, many officials, as indicated on the dotplot, are predicting a higher median federal funds rate in the future. Fed Chairman Jerome Powell mentioned that the Fed is well-positioned to adjust policy rates depending on forthcoming data and evolving economic conditions.
This week, speakers from the Fed, including Anna Paulson from the Philadelphia Fed and Beth Hammack from the Cleveland Fed, are scheduled to address an Economic Committee in the U.S.
Over in the eurozone, while there were no significant announcements, European Central Bank President Christine Lagarde indicated that policies are looking good and suggested an update to forecasts might come in December.
This week’s euro price
The table below displays the percentage change in the euro (EUR) against major currencies this week. The euro stood strong against the Japanese yen.
| USD | EUR | GBP | JPY | CAD | australian dollar | new zealand dollar | swiss franc | |
|---|---|---|---|---|---|---|---|---|
| USD | -0.81% | -0.47% | 0.17% | -0.42% | -0.42% | -0.64% | -1.15% | |
| EUR | 0.81% | 0.38% | 1.06% | 0.44% | 0.44% | 0.22% | -0.30% | |
| GBP | 0.47% | -0.38% | 0.69% | 0.09% | 0.07% | -0.16% | -0.67% | |
| JPY | -0.17% | -1.06% | -0.69% | -0.58% | -0.58% | -0.79% | -1.28% | |
| CAD | 0.42% | -0.44% | -0.09% | 0.58% | 0.00% | -0.21% | -0.73% | |
| australian dollar | 0.42% | -0.44% | -0.07% | 0.58% | -0.01% | -0.23% | -0.74% | |
| new zealand dollar | 0.64% | -0.22% | 0.16% | 0.79% | 0.21% | 0.23% | -0.52% | |
| swiss franc | 1.15% | 0.30% | 0.67% | 1.28% | 0.73% | 0.74% | 0.52% |
This chart illustrates the percentage changes among major currencies. By selecting a base currency from the left and a quote currency from the top, you can see the respective change shown in the intersecting box. For instance, for EUR against USD, the percentage reflects the change from EUR (Base) to USD (Quote).
Daily Market Trends: EUR/USD rises with a weaker U.S. dollar
- The U.S. dollar index (DXY), which measures the dollar’s value against six other currencies, dropped by 0.29% to 98.34 as selling pressure mounted post-Fed announcement.
- The Labor Department indicated an increase in new jobless claims, reporting 236,000 for the week ending on December 6, up from a revised 192,000. However, continuing claims decreased from 1.937 million to 1.838 million, hinting at some stabilization in long-term unemployment.
- The U.S. trade balance improved, as the goods and services deficit shrank to -$52.8 billion in September, compared to -$59.3 billion in August, and it was better than expectations of -$63.3 billion.
- Jerome Powell stated that the Fed is in a “good position” to observe economic developments after a total of 75 basis points of rate cuts this year, noting that the federal funds rate is close to the upper neutral estimate.
- In Europe, former Portuguese central bank president Mario Centeno is reportedly a leading candidate for the ECB’s next vice president, set to fill the position of Spaniard Luis Deguindos, whose term concludes in May 2026.
Technical insights: EUR/USD surpasses 1.1700, eyeing 1.1750
The EUR/USD pair has recently surged past the upper limits of the 1.1600-1.1650 range, with traders now targeting the 1.1800 level and pushing the price above 1.1700. The bullish momentum appears to be growing, as indicated by the Relative Strength Index (RSI), suggesting more upside may follow.
However, should the EUR/USD drop below 1.1700, sellers might push the price down towards the 100-day simple moving average (SMA) of 1.1641, likely leading it down to the 1.1600 mark.
