11 January, 2019
EUR/USD rose 0.23% on Friday to test a session high 1.15299 after it fell yesterday to a session low of 1.14826. The dollar fell versus its major peers on Friday, as investors grew increasingly confident that the U.S. Federal Reserve may hit the pause button on monetary tightening this year. Fed Chairman Jerome Powell reiterated on Thursday the U.S. central bank has the ability to be patient on monetary policy given that inflation remains stable. Markets are now pricing in no further rate hikes by the Fed this year. Fed Vice Chair Richard Clarida also struck a dovish tone, underscoring the central bank’s willingness to remain patient on the issue of raising rates. The euro, on the other hand, has been pressured by a slew of weaker-than-expected economic data, especially from France and Germany. The European Central Bank is widely expected to remain accommodative in 2019, which should keep a lid on the single currency. Later this afternoon (13:30 GMT), US Inflation data for December will be in the focus of many market participants.