"The EUR/USD began the week with solid momentum, climbing toward the 1.1650 area, its highest level in two weeks. The advance is mainly driven by persistent weakness in the U.S. dollar, as global markets aggressively adjust their expectations for Federal Reserve monetary policy. Although the Eurozone's final composite PMI for November was revised slightly lower to 49.6, remaining in contraction territory, this figure did little to curb demand for the euro."
"Another factor shaping the outlook is increasing speculation about the possible nomination of Kevin Hassett as the future Federal Reserve Chair. His more dovish profile and inclination toward lower interest rates have reinforced forecasts of a more flexible medium-term monetary policy. This is helping reduce dollar risk premiums and boosting the euro's relative appeal. Throughout today's session, traders will closely watch the U.S. ISM manufacturing PMI, expected near 48.6, is still signalling industrial contraction."
EUR/USD rose to the 1.1650 area, its highest in two weeks, primarily propelled by sustained U.S. dollar weakness. Investors are pricing a high probability of a 25-basis-point Fed cut next week and foresee additional cuts in 2026, driving down U.S. Treasury yields and supporting the euro. The Eurozone final composite PMI for November was revised to 49.6 and remained in contraction, but it had little impact on euro demand. Speculation about a potential Kevin Hassett Fed nomination and his dovish stance has reduced dollar risk premiums. Key near-term data include the U.S. ISM manufacturing PMI, Eurozone HICP, services PMIs, and an updated U.S. PCE reading.
Read at London Business News | Londonlovesbusiness.com
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