EUR/USD stabilizes as markets shift focus from AI concerns to Fed outlook

EUR/USD is finding equilibrium as November concludes with subdued market activity, reflecting a shift in trader focus from recent AI-related market volatility to upcoming Federal Reserve policy decisions. The dollar index has shown mixed performance as dovish Fed expectations replace earlier risk-off sentiment triggered by AI sector concerns. Market participants are now positioning for potential Fed rate cuts in 2025, with futures pricing suggesting a more accommodative stance than previously anticipated. The euro remains supported by steady ECB policy expectations, though growth concerns persist across the eurozone. Technical analysis indicates EUR/USD is consolidating within a narrow range, with key resistance at recent highs and support at monthly lows. Traders await next week's US employment data and Fed officials' speeches for clearer directional signals as year-end positioning dynamics come into play.