EURUSD:
The Euro-dollar pair is trading in positive territory around 1.0560 during the early European session on Tuesday. However, the upside potential of the major pair seems limited amid rising bets for an additional rate cut by the European Central Bank (ECB) on Thursday.
The ECB is widely expected to announce a 25 basis points (bps) rate cut at its December meeting on Thursday, although an unusual 50 bps rate cut remains a possibility. Market participants will be watching ECB President Christine Lagarde’s press conference after the monetary policy meeting, as it could provide some hints on the future direction of policy and the potential timing of additional rate cuts.
The New York Federal Reserve (Fed) released the latest consumer survey results during the U.S. market session on Monday, noting that U.S. consumers are taking a hard line on their economic expectations. According to the FRB of New York, U.S. consumers expect a sudden improvement in the financial situation for themselves and the federal government. Following the re-election of former U.S. President Donald Trump, respondents reported a dramatic shift in their expectations for debt affordability and credit conditions. The same respondents also sharply lowered their expectations for future levels of government borrowing.
Trading recommendation: Watch the level of 1.0550, if consolidated above consider Buy positions, if rebounded consider Sell positions.
Origin: FreshForex
