EUR/USD is showing little movement on Wednesday, as the pair trades in the mid-1.24 range in the European session. On the release front, German Import Prices declined 0.3%. In the US, there are a host of key events ahead of the Thanksgiving holiday on Thursday. These include Core Durable Goods Orders, Unemployment Claims, UoM Consumer Sentiment and New Homes Sales.
US economic growth continues to rack up impressive numbers, posting an excellent gain of 3.9% in Q3, well above the estimate of 3.3%. This followed a gain in Q2 of 4.2%, which also beat the estimate. The other key release, Consumer Confidence, was unexpectedly soft, dropping to 88.7 points. This was well off the estimate of 95.9 points.
German confidence indicators continue to point upwards. Ifo Business Climate rose to 104.7 points in November. Importantly, this reading snapped a streak of six straight declines. ZEW Economic Sentiment jumped 11.5 points, crushing the estimate of 0.9 points. This strong optimism is somewhat puzzling, given that inflation and growth levels in the Eurozone’s largest economy remain weak. At the same time, increasing confidence in the German economy could translate into stronger German numbers, which would help boost the ailing Eurozone.
EUR/USD 1.2447 H: 1.2495 L: 1.2444
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