EURUSD movements in 2023 and forecast for 2024

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During the past year 2023, the Euro-Dollar moved within narrow limits. The lowest level in 2023 was EURUSD 1.0448, while the highest was 1.1275. That’s a difference of 827 pips. Extremely narrow are these limits considering that there have been days in other years when the EURUSD made this 800 pips move in just 1 day!
The beginning of 2023 EURUSD started at levels of 1.0685 to end the year at 1.1036. Again, an extremely small difference.
For the most part, the Dollar has stopped growing against the Euro since October 2022 and has moved smoothly this year. The reason for this is mainly in the interest rate policy in the United States, where for more than a year there has been talk of an end to interest rate increases. In fact, higher interest rates are not expected this year, but on the contrary, a reduction in the main interest rate, which is now at the level of 5.5%. Expectations for the year 2024 are that the Federal Reserve will begin a smooth reduction of interest rates, and at the end of the year they will be at levels below 5.0%.
This will definitely be reflected in a weaker dollar, regardless of the fact that the ECB will most likely also reduce its main interest rate from the current level of 4.5%.

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