Eur/USD => The pair fell to 1.0650

S&p 500 => The index rose to 4000

GBP/USD => The pair broke below 1.24

Eur/USD falls, ECB rate decision in focus

The euro fell against the dollar Thursday, after three straight days of gains ahead of the European Central Bank's interest rate decision. The central bank is widely expected to raise interest rates by 50 basis points, taking its benchmark lending rate to 2.5 percent. The move comes after the European Central Bank raised interest rates twice in a row by 75 basis points and continues to battle double-digit inflation. Inflation in the euro zone is showing some signs of cooling as it eased from a record high in October. However, it is still five times the ECB's target level, which still makes some policymakers nervous and leaves the door open for hawkish surprises from the ECB.

Where is the EUR/USD price likely to go?

Eur/USD is moving slightly lower, but is still in an upward channel dating back to late October. The RSI supports further gains while remaining in overbought territory. The 100 SMA crosses above 200 SMA in a bullish signal. Buyers may rally above this week's high of 1.0695, extending the bullish trend to the June high of 1.0790 and the mid-April high of 1.0940. On the downside, the support level at 1.06, the December 5 thousand high, broke below here, exposing the 100 moving average at 1.0420.

The S&P 500 rose after a Fed-induced decline

The S&P 500 rose after falling in the previous session after the Federal Reserve raised interest rates by 50 basis points, in line with forecasts after four consecutive hikes of 75 basis points. The move brings the benchmark interest rate to 4.5 percent, the highest level in 15 years, as the Fed continues to battle high inflation. The expected final rate was pushed up to 5.1%, suggesting the Fed will keep raising rates for longer, which boosted the dollar and sent stocks and bonds lower. At the press conference, Fed Chairman Jerome Powell acknowledged that inflation has cooled, but it is important to continue fighting inflation so that inflation expectations do not rise. Looking ahead, market sentiment remains cautious as investors look ahead to U.S. retail sales and initial jobless claims data due later in the day.

GBP/USD slides ahead of boe rate decision

Sterling/dollar fell slightly, snapping a six-day rally, as investors continued to digest the Fed rate decision and looked ahead to the Bank of England rate decision. The Bank of England is expected to raise interest rates by 50 basis points, taking its benchmark lending rate to 3.5 per cent, as it battles rising inflation as the UK economy heads towards recession. That means last month's 75 basis point rate hike, the largest in more than three decades, may have been a one-off rather than the start of a new normal. There are likely to be wide divisions among the nine policymakers as inflation fell back to 10.7 percent year-on-year in November, still more than five times the boe's target, and the UK economy is set to slip into recession this quarter, which could last for most of 2023.

Support for the pair can be seen at 1.2350 (December 5 high) and 1.2130 (200 SMA).

Resistance can be seen at 1.2440 (weekly high) and 1.25 (integer).