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EUR/USD remains under pressure.

EUR/USD remains under pressure. | 31 January 2024

31 January 2024, EUR/USD

EUR/USD remains under pressure.

Event to watch out for today:

21:00 EET - Federal Reserve System (Fed) Interest Rate Decision

EURUSD:

During the Asian session on Wednesday, the EUR/USD pair encountered new selling pressure and dropped to the 1.0815 area in the past hour. This level is close to the lowest point reached earlier this week, on 13 December.

On Tuesday, a JOLTS report revealed that the number of job openings in the US unexpectedly increased to 9.02 million in December. This suggests that the labour market is too strong for the Federal Reserve (Fed) to begin cutting interest rates in the first quarter. The safe-haven US Dollar (USD) is holding near its one-month peak due to geopolitical risks arising from conflicts in the Middle East and China's economic woes. This is putting some pressure on EUR/USD.

However, the recent decline in US Treasury bond yields may discourage USD bulls from making aggressive bets ahead of the highly anticipated FOMC monetary policy decision, which is scheduled to be announced today. Furthermore, uncertainty regarding the timing of the European Central Bank's (ECB) interest rate cuts may act as a positive force for the euro. As a result, this could restrict any further declines in the EUR/USD exchange rate.

Trade recommendation: Sell orders should be placed when trading on a consolidation below 1.0800.

Monitor significant macroeconomic events using the Forex Economic Calendar.

David Johnson
Analyst of «FreshForex» company
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