EUR/USD (current price: 1.0770)
German Industrial Production was weaker than expected in November, as it only grew by 0.3%. French Trade Balance was also weaker than expected with a deficit of -5.2 billion. The Euro started the session with losses but recovered strongly in late trading. Volatility remained low in the pair before the key event of the week today. With no major releases coming out from the U.S., the pair was mostly following global stock markets during the session.
Our assessment: EUR/USD is trading in a short-term consolidation zone before the central bank meetings. The long-term picture remains neutral with strong support still at 1.0475.
