Euro Holds Steady Awaiting German Inflation Data
The euro fell slightly today, after posting considerable gains on Wednesday. The EUR/USD pair is trading at 1.1354, having lost 0.11% on the day. Markets expect German CPI data. The headline inflation rate is expected to edge down to 2.4% on-year in November, retreating from the decade high of 2.5% set in the prior month.
The single currency rose sharply overnight after comments made by the Chairman of the US Federal Reserve, Jerome Powell. The Fed chair said that the current rate levels of 2-2.5 percent is “just below” the neutral range. This is in sharp contrast to Powell’s remarks just last month, when he said that rates were “a long way from neutral”.
Eurozone economic sentiment fell to 109.5 in November from 109.7 in October. Economists had expected a deeper fall to 109.0. Sentiment in services, a sector which produces two-thirds of the Eurozone GDP, was unchanged at 13.3 in November against October. Eurozone consumer confidence index fell to -3.9 in November from -2.7 in October. Index of business optimism in the industry increased to 3.4 in November from 3.0 in October against expectations of a decline to 2.5.