Ella 
In early Asian trading on Wednesday, EUR/USD was trading near 1.1040, its highest level since August. With no important economic data released this week, the dollar is likely to remain under pressure due to the lack of important data that could slow the decline. EUR/USD is currently trading around 1.1037, with an intraday decline of 0.04%.
The core personal consumption expenditures price index, which excludes energy and food prices and is the inflation gauge favored by the Fed, rose at an annual rate of 3.2%, below expectations of 3.3%. The core PCE price index registered a monthly rate of 0.1%, 0.2% lower than expected. The Fed decided to keep interest rates steady at its most recent December meeting and said it could introduce three rate cuts in 2024.
In terms of the euro, the European Central Bank kept its benchmark interest rate unchanged at its last meeting of the year. ECB President Christine Lagarde clarified that the ECB’s policy decisions depend on data and are not affected by market pricing or time limit pressures.
Luis de Guindos, deputy president of the European Central Bank, said it was too early to start easing monetary policy, while adding that the ECB did not foresee a technical recession in the euro zone. Nonetheless, more hawkish comments from the European Central Bank could boost the euro (EUR) and limit the downside for EUR/USD.
The U.S. Richmond Fed manufacturing index for December will be released on Wednesday, while initial jobless claims will be released on Thursday. In the absence of important economic data from the Eurozone and the United States, risk sentiment is likely to remain the main driver of EUR/USD price action.
