EUR/USD Gains on Diverging ECB-Fed Policy Paths

EUR/USD advanced 0.35% to 1.0550 as markets price in diverging monetary policy trajectories between the European Central Bank and Federal Reserve. The pair's momentum reflects growing expectations for a Fed rate cut in December while the ECB maintains a more cautious stance on easing. Technical indicators show EUR/USD breaking above the 50-day moving average at 1.0530, with next resistance at 1.0580. GBP/USD added 0.2% to 1.2720, while USD/JPY retreated 0.4% to 149.50 as the dollar broadly weakened. AUD/USD climbed 0.3% to 0.6480, supported by risk-on sentiment and commodity price stability. The divergence theme dominated trading, with European currencies outperforming as traders position for potential ECB hawkish surprises versus Fed dovishness. Near-term catalysts include Friday's US NFP data and next week's ECB meeting, which could accelerate the policy divergence trade if data supports current market positioning.