European Single Currency Stays Stable
The euro remains stable and is trading at 1.1751 level. Eurozone economy shows improvement in 2017. But still, the level of inflation in the euro area remains well below the ECB target of 2%, despite a stronger labor market and higher economic growth.
The monetary policy of the US Federal Reserve remains unclear. Earlier this year, the Fed firmly hinted that it plans to raise rates three times in 2017. But, the chances of a rate hike in December fell to 33%. Markets do not expect a rate hike, as the US inflation rate remains well below the Fed's 2% target.