EUR/USD Reaches a Four-Week High: Overview for December 15, 2023

<div><img width="360" height="360" src="https://blog.roboforex.com/wp-content/uploads/2023/06/EURUSD_16-360×360.jpg" class="attachment-thumbnail size-thumbnail wp-post-image" alt="EUR/USD analysis today" style="margin-bottom: 15px;" decoding="async" loading="lazy" /></div><p>The <a href="https://roboforex.com/beginners/info/charts/forex/eurusd/" data-internallinksmanager029f6b8e52c="35" title="EUR/USD">EUR/USD</a> pair is extending its upward <a href="https://blog.roboforex.com/blog/2019/11/12/momentum-efficient-oscillator-or-trend-indicator/" data-internallinksmanager029f6b8e52c="96" title="Momentum">momentum</a>.</p>

<p>On Friday, the primary <a href="https://blog.roboforex.com/blog/2020/06/19/how-to-choose-a-currency-pair-for-trading-in-forex/" data-internallinksmanager029f6b8e52c="142" title="Currency Pair">currency pair</a> surged even higher, with the current EUR/USD exchange rate at 1.0990.</p>

<p>Optimism permeates the market, and the appetite for risk is driving the Euro's strength while diminishing the appeal of the USD as a safe-haven asset.</p>

<p>The European Central Bank's December meeting concluded as expected, maintaining a neutral stance. Interest rates were held steady, with the key rate at 4.50% per annum and the deposit rate at 4.00%. In its commentary, the ECB underscored its commitment to sustaining rates at a restrictive level.</p>

<p>The ECB's primary objective is to steer <a href="https://blog.roboforex.com/blog/2022/06/30/what-is-inflation-reasons-and-consequences/" data-internallinksmanager029f6b8e52c="220" title="Inflation">inflation</a> back to its 2.0% target over the medium term. Keeping a high <a href="https://blog.roboforex.com/blog/2019/10/22/trading-news-how-to-earn-on-interest-rates/" data-internallinksmanager029f6b8e52c="90" title="Interest rate">interest rate</a> for an extended period is deemed crucial to achieving this objective.</p>

<p>Simultaneously, inflationary pressures in the region are easing. The ECB has adjusted its expectations for 2023 and 2024, forecasting core inflation at 5.0% in 2023 and 2.7% in 2024. <a href="https://blog.roboforex.com/blog/2019/10/29/trading-news-how-to-make-money-on-gdp/" data-internallinksmanager029f6b8e52c="93" title="GDP">GDP</a> growth is expected to be 0.6% and 0.8%, respectively.</p>

<p>The ECB continues to shrink its balance sheet, refraining from reinvesting funds from maturing securities. The reinvestment process is set to be completed by the end of 2024.</p>

<p>In essence, the European Central Bank has conveyed that, while there are no immediate reasons to lower the interest rate, it remains a possibility for the future. This messaging has been perceived positively, supporting the EUR exchange rate.</p>

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<a href="https://my.roboforex.com/en/register/">Open Trading Account</a></p><p>The post <a href="https://blog.roboforex.com/blog/2023/12/15/eur-usd-reaches-a-four-week-high-overview-for-december-15-2023/">EUR/USD Reaches a Four-Week High: Overview for December 15, 2023</a> appeared first at <a href="https://blog.roboforex.com">R Blog – RoboForex</a>.</p>