EUR/USD maintains bearish momentum near 1.0370 in Thursday's Asian trading session.
Federal Reserve implements 25 basis point reduction,litecoin miner asic adjusting target range to 4.25%-4.50%.
ECB's dovish policy outlook creates additional pressure on the Euro.
The EUR/USD currency pair demonstrates continued weakness around the 1.0370 level during Thursday's Asian trading hours. Market participants attribute this movement to the Federal Reserve's recent policy decision, which combined a nominal rate reduction with unexpectedly hawkish forward guidance. Later today, traders will monitor several key US economic indicators including weekly unemployment claims, housing market data, and revised Q3 GDP figures.
Wednesday's Federal Open Market Committee meeting concluded with a widely anticipated 25 basis point adjustment to the federal funds rate. However, the accompanying economic projections revealed a more conservative outlook for future policy easing compared to previous estimates. The updated 'dot plot' now suggests only two potential rate adjustments in 2025, significantly fewer than the four cuts projected during September's meeting.
During the subsequent press conference, Federal Reserve Chair Jerome Powell emphasized the central bank's commitment to data-dependent decision making. With inflation metrics remaining above the 2% target, policymakers signaled a cautious approach to further monetary easing. This tempered outlook for rate reductions has contributed to renewed strength in the US Dollar relative to its European counterpart.
Meanwhile, expectations continue to build for more aggressive monetary policy accommodation from the European Central Bank. Market analysts anticipate potential rate reductions at each policy meeting through mid-2025, reflecting growing concerns about economic stagnation within the Eurozone. This diverging policy trajectory between the Fed and ECB creates fundamental headwinds for the EUR/USD pair.
