MAJOR CURRENCY PAIRS of the the day’s profit on decrease due to US jobless Allegations.
· Currency Pairs Such as EUR/USD holds Profit above 1.2500 as traders anticipate Feds keep up with their hostile policy-easing cycles
- The Federal Reserve expects interest rates to drop to 4.4% by the end of the year.
- ECB’s Nagel mentioned that inflation remains above the level preferred by the European Central Bank.
The EUR/USD surrenders half of its daily gains but maintains the key support level of 1.1100 during Thursday’s North American trading. The primary currency pair experiences slight pressure as the US Dollar (USD) recovers following the release of lower-than-anticipated Initial Unemployment Claims figures for the week ending September 13. The report revealed that the number of people filing for unemployment benefits for the first time reached 219K, below forecasts and the previous figure of 230K.
The United State Dollar, tracked by the DXY index, recovers its daily losses and climbs back near 101.00. However, its outlook remains uncertain due to the Federal Reserve’s (Fed) significant interest rate reduction and expectations of additional policy loosening. The Fed made its first interest rate reduction in over four years, lowering its main borrowing rates by 50 basis points (bps) to 4.75%-5.00%. This substantial cut from the Fed signaled that policymakers are determined to prevent further worsening in employment conditions and are optimistic about inflation moving towards the central bank’s 2% goal and achievements.