Instrument: EURUSD
Bullish Preference:
A Buy position is envisaged if the price trades above 1.08428 with Take Profit at 1.08497
Bearish Preference:
A Sell position is envisaged if the price trades below 1.08281 with Take Profit at 1.08196
Fundamentals:
USD: ISM Services PMI 4:00PM
JOLTS Job Openings 4:00PM
Comment:
The euro extended its decline towards the $1.08 level, reaching its lowest level since mid-November, spurred by dovish remarks from ECB conservative Isabel Schnabel reinforcing the belief that the bloc’s central bank might start cutting interest rates quicker than previously expected.
Schnabel’s comments to Reuters indicated that further interest hikes were “rather unlikely” after the latest CPI report unveiled a decline in the Euro Area’s inflation rate to 2.4% in November, marking the lowest figure in over two years and falling below the market consensus of 2.7%.
Additionally, the core rate also decreased to 3.6%, falling short of expectations set at 3.9%.
In other economic news, the latest PMI survey showed the bloc’s private sector contracted less than initially thought in November.
Analysis: SCRUM Team