The Eurozone Final Services PMIs were mixed, although only the French number missed the consensus estimate. Eurozone Retail Sales were stronger than expected in November, rising by 1.1%. The U.S. ISM Non-Manufacturing PMI was also a huge bullish surprise with a reading of 57.2, as analysts expected a number of 55.3. The pair rocketed higher after hitting the 1.05 support level in early trading. The ECB hinted on the possibility of rate hikes in 2017 yesterday, after the planned reduction of the bank’s Quantitative Easing program.
Our assessment: EUR/USD re-tested its previous lows near 1.05 yesterday. The long-term picture is still neutral following a highly volatile period.