EUR/USD WEEKLY FORECAST: REBOUND AMID STABILITY IN FRANCE
EUR/USD WEEKLY FORECAST: REBOUND AMID STABILITY IN FRANCE
EUR/USD Ends Week Flat: The EUR/USD pair fluctuated throughout the week due to political developments in France and US economic data, ending the week flat.
French Political Concerns: Fears of a potential French government collapse weighed on the euro, but the currency recovered as the situation didn't escalate, and French government bonds rebounded, improving sentiment.
Dollar Weakens Initially: The dollar initially fell due to weak service business activity and disappointing unemployment claims data.
Surge in Job Growth: The NFP report showed a surge in job growth, temporarily boosting the dollar.
Unemployment Rate Up: The US unemployment rate rose to 4.2% in November, reinforcing expectations of a December Federal Reserve rate cut.
Key Events for Next Week: Traders will focus on the US Consumer Price Index (CPI) for clues on Fed policy. A higher-than-expected CPI could reduce the likelihood of a December rate cut, while a lower or in-line CPI would likely boost rate cut expectations and weaken the dollar.
