Euro remains bid at 1.09

The Euro maintains its bullish momentum against the US Dollar, prompting EUR/USD to build on Thursday’s gains just beyond 1.0900 at the end of the week. On the other hand, the Greenback appears mildly offered around 103.70 according to the USD Index (DXY), a region also coincident with the critical 200-day SMA.

In the meantime, volatility is expected to remain at low levels following the US Thanksgiving Day holiday on Thursday and Friday’s shortened trading session.

The US Dollar has managed to rebound earlier in the week despite the prevailing expectation of a potential interest rate cut by the Federal Reserve (Fed) at some point in the spring of 2024. This view remains well supported by persistent disinflationary pressures and the ongoing easing of the labour market.

On the European docket, final GDP Growth Rate figures showed the German economy shrank 0.1% QoQ and 0.4% over the last twelve months. Still in Germany, the Business Climate index improved to 87.3 in November, according to the IFO institute.

Shifting the focus to the European Central Bank (ECB), its President Christine Lagarde stated that progress was being observed in terms of inflation. She mentioned that significant actions had already been taken regarding interest rates and that the situation could now be monitored. Still around the bank, Vice-President Luis De Guindos is due to speak later in the session.

Across the pond, preliminary Manufacturing and Services PMIs will be the sole release on Friday.