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The EUR/USD pair has reached a low for the week.

The primary currency pair exhibits relative weakness on Monday, with the current EUR/USD exchange rate at 1.0875.

Market sentiment responded to Jerome Powell's comments on future interest rates with a perception of mildness. Powell emphasized a more balanced risk between insufficient and excessive stimulus. Investors found Powell's tone to be overly cautious.

According to Powell, the current framework of US monetary policy is in line with the expected slowdown in economic growth. However, the Federal Reserve stands ready to further tighten monetary conditions if deemed necessary.

Investors inferred that the Fed's comments, being on the milder side, indicate the central bank's confidence in its actions. It suggests the Fed can afford to patiently await the outcomes of implemented measures without the immediate need for interest rate adjustments.

For today, attention is warranted for the Sentix Investor Confidence Index statistics in the eurozone and the volume of factory orders in the US.

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The post EUR Faces Downward Pressure From USD: Overview for December 04, 2023 appeared first at R Blog - RoboForex.

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By: Anna Rostova
Title: EUR Faces Downward Pressure From USD: Overview for December 04, 2023
Sourced From: blog.roboforex.com/blog/2023/12/04/eur-faces-downward-pressure-from-usd-overview-for-december-04-2023/
Published Date: Mon, 04 Dec 2023 08:37:39 +0000

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