KEY HIGHLIGHTS
Fed’s Hawkish Stance Sinks EUR/USD Below 1.0400.
GBP/USD Nears 1.2600 Amid BoE Rate Decision Buzz.
AUD/USD Slips as US Dollar Gains Strength.
USD/CAD Retreats After Hitting Two-Year High.
INTRODUCTION
Major currency pairs remain under pressure as the US Dollar strengthens following the Federal Reserve’s hawkish rate cut. Traders now await key economic data, including US GDP and inflation figures, alongside central bank decisions in the UK, Eurozone, and Australia, which continue to shape market sentiment. This article delves into the market movements of EUR/USD, GBP/USD, AUD/USD, and USD/CAD, providing a detailed technical overview and trade suggestions to help investors navigate the evolving forex landscape.

EUR/USD Analysis
Market Overview
The EUR/USD pair remains under pressure, trading below the 1.0400 level, weighed down by the Federal Reserve’s hawkish stance on rate cuts. During Thursday’s Asian session, the pair dipped to around 1.0370 as the US Dollar strengthened.

Key Drivers
The Federal Reserve implemented a 25 basis point rate cut during its December meeting, reducing the benchmark lending rate to 4.25%-4.50%, the lowest in two years.
Fed Chair Jerome Powell signaled a cautious approach to further rate reductions due to persistent inflation above the 2% target.
In the Eurozone, expectations of aggressive ECB rate cuts through June 2025 continue to weigh on the Euro.
Technical Overview
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