Published: 2024-12-30T12:17:08.000Z
EUR/USD, GBP/USD, USD/JPY flows: USD drifts in Europe
Director of Research , Macroeconomics and Strategy
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The USD has drifted lower in European trading, with thin conditions and year end flows rather than fundamentals being the driving force.
The key is how U.S. data impacts Fed expectations, as the market is now not fully discounting a further 25bps cut until the June FOMC meeting – the ISM on Jan 3 will have some interest, but it is really the Jan 10 U.S. employment report that is key. USD strength will likely return into the new year, given the underlying bias in the market and also expectations that the Trump administration policies will likely be positive (tax cuts/deregulation and tariffs).