Amidst apprehension ahead of the Federal Reserve’s monetary policy, the EUR/USD pair sharply declines, approaching the key support level of 1.0800. The descent is triggered by disappointing German Retail Sales figures, contributing to a subdued market sentiment. December’s Monthly Retail Sales unexpectedly contracted by 1.6%, contrary to the anticipated 0.7% expansion, with November’s consumer spending already witnessing a substantial 2.5% decline.

The annual Retail Sales exhibited a moderated decline of 1.7%, compared to November’s 2.4% drop, signaling the strain on households due to higher interest rates implemented by the European Central Bank (ECB) and enduring inflationary pressures. The bleak Retail Sales data fosters expectations of potential early rate cuts by the ECB, weighing on the Euro.

Despite ECB President Christine Lagarde’s indication of potential interest rate reductions starting in late summer, prospects for delayed rate cuts have diminished following the lackluster Q4 Gross Domestic Product (GDP) preliminary data, especially after the disappointing Retail Sales figures.

The Eurozone economy, managing to evade a technical recession, maintained stagnancy in the final quarter of 2023 after a 0.1% contraction in the July-September quarter.

Investors remain on edge as they await the Federal Reserve’s interest rate decision. In the early European session, S&P500 futures register significant losses, while the US Dollar Index (DXY) modestly rebounds above 103.50.

As per the CME Fedwatch tool, expectations indicate the Fed will maintain interest rates within the 5.25-5.50% range. The focus is now on the Fed’s outlook on interest rates, crucial in determining market dynamics.


Today last price1.0812
Today Daily Change-0.0033
Today Daily Change %-0.30
Today daily open1.0845
Daily SMA201.0902
Daily SMA501.0917
Daily SMA1001.0778
Daily SMA2001.0842
Previous Daily High1.0857
Previous Daily Low1.0812
Previous Weekly High1.0932
Previous Weekly Low1.0813
Previous Monthly High1.114
Previous Monthly Low1.0724
Daily Fibonacci 38.2%1.084
Daily Fibonacci 61.8%1.0829
Daily Pivot Point S11.0819
Daily Pivot Point S21.0793
Daily Pivot Point S31.0773
Daily Pivot Point R11.0864
Daily Pivot Point R21.0883
Daily Pivot Point R31.0909

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