Germany’s November CPI, announced yesterday, was almost as expected, so there was little reaction from the market.
Yesterday, the French central bank governor, Villeroy de Galhau, made some dovish comments, such as saying, ‘There is enough reason to cut rates in December,’ and ‘We do not rule out interest rates below the neutral level.’ However, the market had already priced in a rate cut, so the reaction was limited.
Since it was Thanksgiving in the U.S., the day was quiet.
Today, the Eurozone HICP (Harmonized Index of Consumer Prices) is expected to show an increase, including the core figures, compared to the previous month. If the result is higher than expected, it could strengthen euro buying as the market has already been anticipating a rate cut.
However, concerns about the European economy still linger. Any rise in the euro is likely to be temporary, so we recommend a strategy of selling on rebounds.
Forecasted Range for EUR/USD: 1.0590 – 1.0490
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