EUR/USD (current price: 1.0684)
Most of the Eurozone Manufacturing PMIs were better than expected in November, with the Italian and the Spanish number being the most bullish. The European Central Bank is planning to cut back its quantitative easing program in the near future according to an announcement yesterday. The news sent the common currency higher against most of its peers, as it is the first sign of monetary tightening from the ECB. The U.S. ISM Manufacturing PMI also beat expectations, but the Dollar still finished the day with broad losses.
Our assessment: EUR/USD is trading within a consolidation pattern near the 1.06 level. The short-term trend is still bearish, with support at 1.0475.
