EUR/USD Rises as European Markets Rally on Fed Rate Cut Expectations

EUR/USD gained 0.2% to 1.0545 as European equity markets closed higher across the board, with Spain's Ibex and Germany's DAX leading gains. The euro's strength reflects growing market confidence that the Federal Reserve will proceed with a 25-basis-point rate cut at the December 10 FOMC meeting, despite stronger-than-expected US jobs data. Market pricing shows an 85% probability of a December cut, as traders focus on the diverging monetary policy paths between the ECB and Fed. The DAX's technical breakout above 19,500 provides additional support for euro sentiment, while GBP/USD consolidated near 1.2720. Immediate resistance for EUR/USD sits at 1.0570 (50-day MA), with support at 1.0520. Traders should monitor upcoming ECB officials' speeches for any hawkish signals that could accelerate euro gains, particularly as the dollar faces pressure from persistent rate cut expectations.