This morning, markets will focus on the Euro and inflation data for November. What does the forex market expect from the data? A surprise to the downside could drag EUR/USD down to 1.03according to Commerzbank economists.
prices are decisive
“If the data surprises to the downsidethe rate hike expectations for December could be relaxed, which would put a brake on the Euro. A fall towards 1.03 would be possible“.
“If the data is above market expectationsthis is likely to support the hawks on the ECB board, who have been quite vociferous in recent days, causing the market to trend back towards a 75 basis point rally, which I would support the Euro.”
“Surprisingly high inflation data from the euro zone, combined with a report on the US labor market (ADP index out today, labor market report on Friday) which could show the first signs of a slowdown, could catapult EUR/USD significantly above 1.04 again.”
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
