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EUR/USD posts a fresh annual low near 1.0530 in European trading hours and extends its losing streak for the fifth trading day on Thursday. The major currency pair has faced an intense sell-off as the US Dollar (USD) continues to enjoy upside momentum, being one of the major beneficiaries of President-elected Donald Trump’s win in the United States (US) presidential election. The US Dollar Index (DXY), which gauges the Greenback’s value against six major currencies, climbs to near 106.80, the highest level seen since November 1, 2023.It will be easy for Trump to implement the agenda of lower taxes on businesses and workers, as well as high import tariffs, as Republicans have ensured control of the Senate and the House of Representatives, according to the Associated Press. An increase in import tariffs would increase the demand for domestically produced goods and services, which would boost inflationary pressures that limit the potential of the Federal Reserve (Fed) to cut interest rates faster and deeper.The Greenback rose sharply on Wednesday after the release of the US Consumer Price Index (CPI) data for October. The inflation report showed that price pressures grew expectedly on a monthly as well as annual basis, boosting expectations of interest rate cuts in the December meeting. According to the CME FedWatch tool, the probability of the Fed cutting interest rates by 25 basis points (bps) to 4.25%-4.50% next month increased to 83% from 59% a day before.In Thursday’s session, investors will pay close attention to Fed Chair Jerome Powell’s commentary in a panel discussion hosted by the Federal Reserve Bank of Dallas at 20:00 GMT. Market participants would like to know his stance on December’s monetary policy decision and the impact of Trump’s policies in the medium and longer term.On the economic front, investors will focus on the US Initial Jobless Claims for the week ending November 8 and the Producer Price Index (PPI) data for October, which will be published at 13:30 GMT.
Daily digest market movers: EUR/USD faces pressure on firm ECB dovish bets
Technical Analysis: EUR/USD sees support near 1.0500 EUR/USD slides to its lowest since November 1, 2023, near 1.0530. The major currency pair weakened after breaking below the April 16 low of 1.0600. The outlook of the shared currency pair has become bearish as all short to long-term Exponential Moving Averages (EMAs) are declining. The 14-day Relative Strength Index (RSI) drops to nearly 30.00, adding to evidence of more weakness in the near term.Looking down, the pair is expected to find a cushion near the psychological support of 1.0500. On the flip side, the round-level resistance of 1.0700 will be the key barrier for the Euro bulls.More By This Author:Pound Sterling Nears Three-Month Low Against USD As Traders Brace For Inflation Data USD/CAD Price Forecast: Continues To Face Pressure Above 1.3950 Pound Sterling Declines As UK Unemployment Rate Jumps To 4.3%