Investors' attention is focused on the US inflation report published in the New York session yesterday to be a market guide for the closing trades of 2024.
Examining the report, the US annual consumer price index (CPI) reading in November met expectations to increase to 2.7%, from 2.6% the previous month.
The US dollar, which weakened at the early opening of the New York session yesterday, later showed strengthening after the data was published.
The market is now placing high expectations on the 25 basis point interest rate cut to be implemented by the Federal Reserve (Fed) at the FOMC meeting next week.
For price movements, investors are watching the movement on the EUR/USD currency pair chart which shows a downward pattern from the beginning of the week.
A weak increase in price was seen yesterday near the 1.05400 level before a price decline around the 1.05000 zone after the CPI data was published.
The price decline was not very significant, seeing the price remain hovering in the important zone, continuing trading in the early Asian session this Thursday morning.
The Euro currency is seen moving under pressure ahead of the decision of the European Central Bank (ECB) policy meeting today with expectations of a 25 basis point interest rate cut to be implemented.
The trend remains bearish with the price movement signal below the Moving Average 50 (MA50) resistance line on the 1-hour timeframe on the EUR/USD chart.
The price tendency is to continue the expected downward pattern towards the previous focus zone around 1.04000.
However, investors will also be watching the US producer inflation (PPI) data tonight which could influence the US dollar.
If the price instead shows a surge, it is likely that the price will head back to the previous resistance zone of 1.06000 which still remains a barrier to price increases.
Breaking through this resistance will push the price to record a new 4-week high with the target moving to around 1.07000.
