EUR/USD maintains its position above 1.1000 ahead of Spain, Germany CPI data

EUR/USD extends its winning streak for the fifth consecutive session, trading around 1.1000 during the Asian session on Wednesday. The EUR/USD pair is benefiting from the softer US Dollar (USD), which is influenced by a less hawkish stance from the US Federal Reserve (Fed).

Market participants are likely to keep a close eye on economic data related to the European Central Bank (ECB) on Wednesday. Spain and Germany are expected to release preliminary Consumer Price Index (CPI) data for November. Both countries are anticipated to report a slowing in the annual inflation rate. Additionally, the European Commission is set to release its Economic Sentiment Indicator, which measures the overall trend of the overall Euro Zone economy.

The US Dollar Index (DXY) continues to lose ground near 102.60, especially given the better-than-expected economic data from the United States (US). The US Housing Price Index (MoM) for September maintaining consistency at 0.6%, exceeding the expected figure of 0.4%, suggests a stable and positive trend in housing prices, reflecting resilience and growth in the housing market. The US CB Consumer Confidence Index experienced an increase in November, reaching 102.0 from the previous reading of 99.1 (Revised from 102.6).

Additionally, the decline in US Treasury yields is cited as an additional negative factor contributing to the weakening of the Greenback. Furthermore, the accommodative remarks from Fed Governor Christopher Waller might have weighed on the Greenback. He suggested that the Federal Reserve may not insist on maintaining high-interest rates if inflation consistently declines.

Investors will focus their shift on the preliminary Gross Domestic Product Annualized for the third quarter in the US. Later in the day, the Federal Reserve will release the Beige Book, which will give a picture of the overall US economic growth.