EUR/USD edges higher, holding support at 1.0500 during European trading hours on Wednesday, as investors focus on political turbulence in France. The no-confidence motion against Prime Minister Michel Barnier has heightened uncertainty in the Eurozone’s second-largest economy, potentially pressuring the Euro (EUR).
Meanwhile, economic data from the United States could steer market sentiment. The November ADP Employment Change is forecasted to show 150K new jobs, down from October’s 233K, while the ISM Services PMI is expected to dip slightly to 55.5. These data points will shape expectations for the Federal Reserve’s December 18 meeting, where a 25 bps rate cut is anticipated by 74% of market participants.
Technically, EUR/USD consolidates around 1.0500, with bearish momentum easing as the 14-day RSI hovers near 40.00. Key support lies at the November 22 low of 1.0330, while the 50-day EMA at 1.0750 is a significant resistance level.
Investors remain cautious ahead of ECB President Lagarde’s testimony, the French no-confidence vote at 15:00 GMT, and Fed Chair Powell’s speech, all of which could amplify market volatility.
