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The EUR/USD pair faces resistance above 1.0270 as the US Dollar strengthens. Anticipation of President-elect Trump’s policies, including potential inflationary measures, is boosting the Greenback.
While the Euro showed strength earlier, the US Dollar’s rebound, fueled by robust US job growth and expectations of limited Fed rate cuts, is hindering further Euro gains. Market participants are closely watching US inflation data, with the December CPI report due on Wednesday and the PPI data expected later today.
The ECB, despite signaling further policy easing, remains unfazed by potential trade tensions with the US. However, a weak Eurozone economy, particularly in Germany, is weighing on the Euro.
Key Market Drivers:
US Dollar Strength: Driven by robust US job growth, expectations of limited Fed rate cuts, and anticipated inflationary pressures from potential Trump administration policies.
Euro Weakness: Despite ECB’s accommodative stance, the Eurozone economy, particularly Germany’s manufacturing sector, is struggling.
Inflation Focus: Market participants are closely monitoring US inflation data, with the December CPI and PPI reports due soon.
Technical Factors: EUR/USD faces resistance at 1.0270, with a bearish outlook supported by declining technical indicators.
