The primary currency pair saw a decline on Friday. The current exchange rate for EUR/USD is at 1.1062.
In a market with thin and low liquidity, such as the current one, abrupt price swings are possible. The predictability of the situation is expected to improve as most investors resume transactions after the New Year.
The latest weekly report on initial jobless claims in the US indicates a rise of 12 thousand, reaching 218 thousand. The previous week's figure, a revised reading, was 206 thousand, and a rise of 6 thousand was expected.
No significant additional news has emerged. As the year draws to a close, the foreign exchange market appears confident and favorable. A key factor supporting buyers is the anticipation of US monetary easing in 2024, which puts pressure on the USD, enabling other currencies to appreciate.
In 2023, the euro strengthened by 3.4% against the US dollar, starting the year at 1.0702 and concluding at approximately 1.1060.
Our analytics team will be back on 9 January 2024 with the latest overviews and forecasts. Happy Holidays!