Market momentum builds ahead of key Fed speakers.
Key Highlights
- Euro climbs to multi-day highs as weak ADP data hits the U.S. Dollar.
- Dollar Index slides to monthly lows near 99.30.
- Traders price in December rate-cut potential.
Market Overview
The euro extended its rally above 1.1600 on Tuesday as the U.S. Dollar weakened broadly.
Soft ADP employment data showed private-sector job creation falling by more than 11,000 per week in late October, suggesting cracks in the labor market and reviving speculation of a Fed rate cut by year-end.
Optimism about a U.S. government funding deal further lifted sentiment, helping the euro mark its strongest advance since late October.
Attention now turns to speeches from Fed officials — including Williams and Waller — that could confirm or cool easing expectations.
Technical Outlook
- Stochastic near overbought territory, hinting at short-term exhaustion.
- Price remains above the 20-period MA, keeping the bullish bias intact.
- Expect mild consolidation before another potential push higher.
Key Levels
| Resistance | Support |
|---|---|
| 1.1633 / 1.1667 | 1.1529 / 1.1492 |
Fremora Analyst Takeaway
Momentum favors the euro above 1.1500, though intraday volatility could emerge if Fed officials strike a hawkish tone.
A corrective dip toward 1.1550 would offer renewed buying opportunities for trend followers.
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