Euro makes run for 1.07

The Euro (EUR) now regains some balance against the US Dollar (USD), prompting EUR/USD to rebound from earlier lows and approach the key barrier at 1.0700 the figure, as the European session draws to a close on Wednesday.

Meanwhile, the US Dollar gives away part of its earlier advance, motivating the USD Index (DXY) to recede to the 105.60 region amidst renewed weakness in US yields in the belly and the long end of the curve.

In terms of monetary policy, there is a growing consensus among market participants that the Federal Reserve (Fed) is likely to keep its current monetary stance unchanged for the time being. The possibility of an interest rate adjustment in December has lost some momentum, especially after the recent FOMC meeting and the release of weaker-than-expected Nonfarm Payrolls data for October (+150K jobs).

A similar sentiment can be observed regarding the European Central Bank (ECB), as investors currently lean towards an extended impasse in its tightening measures, most likely until the latter part of next year.

On the Euro's calendar, the final inflation rate in Germany showed CPI rising 3.8% YoY in October and coming in flat on a monthly basis. In the euro region, Retail Sales contracted 0.3% MoM in September and 2.9% over the last twelve months. Across the pond, Mortgage Applications measured by MBA rose by 2.5% in the week to November 3, and Wholesale Inventories increased 2.2% in September.

Later in the session, NY Fed John Williams (permanent voter, centrist), FOMC Governor Michael Barr (permanent voter, centrist) and FOMC Governor Philip Jefferson (permanent voter, centrist) area all expected to speak as well.