EUR/USD Surges, Aided by the Fed: Overview for December 14, 2023

<div><img width="360" height="360" src="https://blog.roboforex.com/wp-content/uploads/2023/06/EURUSD_15-360×360.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 has experienced a significant surge.</p>

<p>On Thursday, 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> is maintaining higher ground. The current exchange rate for EUR/USD is at 1.0905.</p>

<p>Investors are responding against the US dollar following valuable insights gained from the Federal Reserve's assertive remarks.</p>

<p>The Fed's meeting concluded with a neutral outcome. The <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> was retained at 5.50% per annum, and the overall tone of statements was positive. However, it's essential to recognize that the Fed made some abrupt turns: initially indicating a commitment to a tight monetary policy and later providing a high <a href="https://blog.roboforex.com/blog/2022/06/30/what-is-inflation-reasons-and-consequences/" data-internallinksmanager029f6b8e52c="220" title="Inflation">inflation</a> assessment.</p>

<p>According to the Fed's projections, the US economy is decelerating, but the risks of a recession next year are assessed at less than 50%. A potential interest rate cut in 2024 is seen as a preventive measure against recession risks in the US. Simultaneously, the inflation concern will fade into the background. According to the CME FedWatch monitor, the market anticipates an 80% probability of a rate cut in March.</p>

<p>In essence, the situation has turned complex and emotionally charged. However, the market heard what it desired: a forthcoming interest rate reduction, and this played against the USD.</p>

<p>On Thursday, market attention will pivot to the European Central Bank meeting. Although there's no suspense regarding the interest rate, it's prudent to pay attention to the regulator's comments.</p>

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