EUR/USD eyes upside after holding 1.15 support in November – DBS

FXStreet Insights Team FXStreet

EUR/USD may extend gains in December after holding 1.15 support, as ECB President Lagarde is expected to signal rates are appropriate, supporting the euro amid a resilient Eurozone economy and stable conditions in France, DBS' Senior FX Strategist Philip Wee notes.

ECB seen maintaining deposit rate at 2% through 2026

"EUR/USD may eye higher levels in December after finding firm support at 1.15 throughout November. In contrast to the Fed, the case has strengthened for the European Central Bank to maintain the deposit facility rate at 2% through 2026."

"Appearing before the European Parliament on December 3, ECB President Christine Lagarde will likely convey that interest rates are at the correct level amid optimism for the resilient Eurozone economy later in the year and the situation in France."

Author

FXStreet Insights Team

FXStreet

The FXStreet Insights Team is a group of journalists that handpicks selected market observations published by renowned experts. The content includes notes by commercial as well as additional insights by internal and external analysts.

GBP/USD rises above 1.3550 after UK CPI data

GBP/USD preserves its bullish momentum midweek and trades above 1.3550 in the American session. The UK annual Consumer Price Index (CPI) inflation picked up to 2.9% in July, meeting estimates, while core CPI rose by 2.6% YoY in July versus 2.5% expected. The Federal Reserve (Fed) will publish the minutes of its July policy meeting later in the day.

EUR/USD climbs above 1.1600 as USD slips ahead of Fed Minutes

EUR/USD gathers bullish momentum and trades slightly above 1.1600 in the second half of the day on Wednesday. The US Dollar resumes its downside as weak US economic data weigh on expectations of tighter Federal Reserve policy. Traders will take further cues from the FOMC Minutes later in the day.

Gold climbs back above $4,350 as USD remains depressed ahead of FOMC Minutes

Gold climbs back above $4,350 during the first half of the European session, reversing a part of the previous day's heavy losses. The US Dollar attracts some sellers, and for now seems to have stalled this week's goodish recovery from a two-month low, which is seen as a key factor supporting the commodity. Bulls, however, might opt to wait for more cues about the US Federal Reserve's future policy path before placing fresh directional bets on the non-yielding yellow metal.

Crypto Today: Bitcoin, Ethereum, XRP defend key support as ETF inflows return

Bitcoin’s upside remains capped on Wednesday while the downside appears strongly supported above $64,000. The Crypto King’s early week rebound lost momentum near $65,000 as investors assessed the impact of geopolitical tensions in the Middle East.

Minutes of the July FOMC meeting serves as one of today’s economic highlights

Bear steepening turned into bear flattening in Europe yesterday. Daily changes on the German yield curve ranged between +2.4 bps (30-yr) and +5 bps (2-yr). EU swap rates added 0.9 bps (30-yr) to 4.5 bps (2-yr). The US/Iran stalemate and higher energy prices offer a first explanation.

Why is Crude Oil priced for a reopening the ships haven't made?

Fourteen vessels crossed the Strait of Hormuz on Tuesday. Before the war, the count ran near 120 a day. In the sessions since the waterway was publicly declared open, Brent has drifted back to $87 and West Texas Intermediate (WTI) to $81, both a little lower again on Wednesday, with daily momentum on each unwound from the top of its range in late July to the low twenties now.