EUR/USD (current price: 1.0634)
German Final CPI came in at 0.1% in November, as expected, but the WPI Index missed the consensus estimate with a 0.0% reading. The German ZEW Economic Sentiment Index was also a negative surprise, and Italian Industrial Production missed expectations as well. The Euro still gained some ground against the Dollar in early trading, as the USD continued its broad correction. The pair headed slightly lower in the second half of the day, finishing right at the opening rate.
Our assessment: EUR/USD continues to hover around the long-term lows near 1.0475. The short-term consolidation might end today after the FED decision. Resistance is ahead at 1.0850.
