EUR/USD Maintains Consolidation: Overview for January 19, 2024

EUR/USD analysis today

The EUR/USD pair is conserving its energy in anticipation of significant developments.

On Friday, the primary currency pair remains within a consolidation phase, with the current EUR/USD exchange rate at 1.0877.

Yesterday’s released US statistics presented a mixed picture, reinforcing the market’s sentiment that the Federal Reserve might not find it necessary to lower interest rates at this point.

Initial jobless claims decreased to 187 thousand over the week, down from the previous 202 thousand, contrary to the forecast of an increase to 207 thousand.

In December, housing starts experienced a decline from 1.56 million to 1.46 million. However, building permits increased from 1.47 million to 1.50 million. The decline in housing starts is attributed to the prevailing high interest rates and appears to confirm an existing trend. On the other hand, the rise in building permits signals optimism for the future. Should interest rates decrease in the spring, all the necessary permits would already be in place.

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