The EUR/USD pair traded within a narrow range this week, reflecting subdued market activity during the holiday season. Limited economic data releases and thin trading volumes have kept the currency pair largely confined, with investors hesitant to take major positions ahead of year-end.
Despite the calm, the euro has shown resilience, holding steady against the dollar as traders monitor the Federal Reserve’s policy trajectory and the European Central Bank’s inflation stance. Market participants remain cautious, citing ongoing concerns about global economic uncertainties and potential geopolitical developments that could disrupt the lull.
While short-term movements are muted, the pair’s trajectory into 2024 will hinge on key data points and central bank decisions in early January. For now, the EUR/USD appears to be taking a breather in a traditionally quiet trading period.
