EUR: not a day without a record. Overview for 28.12.2023

The primary currency pair continues to soar on Thursday. The current EURUSD exchange rate stands at 1.1114.

Nothing significant has occurred: investors have simply become absorbed in forming expectations regarding the further actions of the US Federal Reserve. The market now factors a 90% probability of an interest rate reduction in March. The overall decline in borrowing costs in 2024 could reach 158 points, compared to the 153 points estimated yesterday. Optimism is visibly growing.

Market participants are considering all signals concerning the cooling of inflationary pressure. Of note is the Fed’s inclination towards a soft landing for the economy rather than a severe recession.

The DXY index might conclude 2023 with a 2.6% loss, marking the first annual decrease since 2020.

Today, the market will be watching the weekly jobless claims report in the US and the release of pending home sales for November.