Euro is gaining ground versus the US Dollar.
The Euro remains strong versus the US Dollar, encouraging EURUSD to extend Thursday’s gains well above 1.0900 by the conclusion of the week.
The Greenback, on the other hand, appears to be slightly offered around 103.70 according to the USD Index (DXY), a region that also coincides with the important 200-day SMA.
Meanwhile, volatility is expected to stay low following the US Thanksgiving Day holiday on Thursday and the abbreviated trading session on Friday.
Earlier in the year, the US Dollar managed to recover. notwithstanding the widely held assumption that the Federal Reserve (Fed) will decrease interest rates sometime in the spring of 2024. This viewpoint is nevertheless strongly supported by sustained disinflationary forces and continuous labor market softening.
On the European front, final GDP Growth Rate estimates showed that the German economy fell 0.1% quarter on quarter and 0.4% year on year. According to the IFO institute, the Business Climate index in Germany improved to 87.3 in November.
Shifting attention to the European Central Bank (ECB), President Christine Lagarde claimed that inflationary progress was being made. She stated that major interest rate adjustments had already been made and that the situation could now be watched. Still Vice-President Luis De Guindos is scheduled to speak later in the session.
On the other side of the Atlantic, only preliminary Manufacturing and Services PMIs will be released on Friday.
Daily market movers: The euro continues to languish around 1.0900.
The euro extends its recent advances versus the US dollar.
US and German yields rose early on Friday.
Investors are still weighing the Fed’s rate cut in 2024.
Markets expect the ECB will maintain its current stance until early next year.
Lagarde of the ECB emphasized that the fight against inflation is far from over.
In November, the business climate in Germany improves slightly.
Huw Pill of the Bank of England suggested that economic activity and employment growth are slowing.
