EUR/USD remains steady near its opening price from Wednesday, approximately 1.1750, showing little movement in light of a limited economic calendar in the US that has seen a recovery in the Dollar. In the meantime, inflation data from the Eurozone and a decline in business confidence in Germany continued to exert pressure on the single currency.
EUR/USD remains stable as modest US data enables the Dollar to make a slight recovery during North American trading hours. Eurozone inflation shows signs of moderation, while Germany’s IFO business confidence declines for the second consecutive month. Market participants are closely monitoring the upcoming US CPI data, jobless claims, and this week’s ECB meeting, which is anticipated to maintain current policy settings.
> Single currency remains stable as softer Eurozone inflation and weak German sentiment counterbalance dovish Fed rhetoric : In the US, Atlanta Fed President Raphael Bostic has made a statement, indicating that he anticipates solid GDP growth and expects this trend to persist into 2026. Earlier, Fed Governor Christopher Waller made neutral to dovish remarks, indicating his support for further easing in the upcoming year. Upcoming, the US economic calendar will present inflation data along with Initial Jobless Claims for the week concluding December 13. Across the pond, inflation in the EZ has decreased, providing relief for the European Central Bank, which has indicated that the easing cycle is complete. Germany’s IFO Business Confidence poll indicated a decline in sentiment for the second consecutive month. Market participants are focusing on the ECB’s December monetary policy meeting, anticipated to be a non-event, as President Christine Lagarde and her team are likely to maintain rates at their current levels for this meeting and throughout the upcoming year. Currently, the ongoing conflict between Russia and Ukraine may pose challenges for the Euro. The Ukrainian President Zelenskiy is applying pressure on Europe, asserting that they ought to utilize Russia’s frozen assets to curb Putin’s appetite for war. Politico disclosed that discussions between the US and Russia regarding the Ukraine conflict are scheduled to take place in Miami this weekend.
Latest FX Rate Trends : Euro stabilizes in anticipation of the ECB’s meeting
- Raphael Bostic remarked that while it was a narrow decision, “inflation is more worrying than jobs.” He stated that GDP growth is robust and that a more vigorous economy “will take pressure off the job market.”
- Fed Governor Christopher Waller indicated that recent rate cuts have bolstered the labor market, emphasizing that policy continues to be 50 to 100 basis points above neutral. However, he emphasized that there is no immediate need for further easing, noting that inflation is not expected to pick up again.
- The US Bureau of Labor Statistics has indicated that Nonfarm Payrolls saw an increase of 64K in November, surpassing the anticipated figure of 50K and recovering from the revised decline of –105K in October. Nonetheless, the Unemployment Rate increased to 4.6% from 4.4%, exceeding the Federal Reserve’s forecast of 4.5%.
- In October, US Retail Sales experienced a standstill, remaining flat for the month following a 0.1% increase in September, and falling short of expectations for a slight uptick. Conversely, sales from the control group, which directly contribute to GDP figures, experienced a significant rebound, increasing by 0.8% following a previous contraction of 0.1%.