Here we want to talk about the EURUSD 2024 Fundamental Outlook Preview :
EURUSD Key Points
- After a quiet 2023, EURUSD will likely see more volatility in 2024.
- Stronger US growth and similar inflation on both sides of the Atlantic could lead to more aggressive interest rate cuts from the ECB, boosting EURUSD.
- Technically speaking, the 2023 range between 1.0500 and 1.1250 will be key.
EURUSD 2023 in Review
Despite some volatility throughout the year, you could say that 2023 was a relatively forgettable year for the world’s most widely traded currency pair.
In mid-December, EURUSD is trading up just a couple hundred pips, or about 2%, from the 1.0699 level where it started the year.
More to the point, the pair saw a range of just 828 pips across the entire year, the second-lowest range since the inception of the euro in 1999.
Using interpolated prices based on the national currencies before that, 2023’s range is the 3rd lowest in the last 50 years!
The clearest trend in EURUSD during 2023 was the big Q3 drop from above 1.12 to below 1.05 on the back of the “US Economic Exceptionalism” narrative, or the theme that the world’s largest economy was handily outperforming and decoupling from other developed market rivals.
Not surprisingly in retrospect, that theme reversed in Q4 as US economic data slowed down and began to “catch down” to the rest of the world, including the European Continent.
Based on the above information read about the EURUSD 2024 Fundamental Outlook below!
EURUSD 2024 Fundamental Outlook
When it comes to EURUSD Fundamental Outlook Preview in 2024, The most important theme will be central bank interest rate cuts.
As of writing in the wake of the final central bank meetings of 2023, traders believe that both the US Federal Reserve and European Central Bank have reached peaked interest rates and will be cutting interest rates in the first half of 2024.
Of course, forex is a relative game, so the key question for EURUSD traders will be which central bank cuts interest rates the most, or specifically which cuts interest rates the most relative to expectations.
Thanks for reading the EURUSD Fundamental Outlook Preview in 2024 with us.
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