EUR/USD (current price: 1.0444)
German Import Prices and Italian Retail Sales both beat the consensus estimates last month with readings of 0.7% and 1.2% respectively. The U.S. Final Quarterly GDP was also a positive surprise, coming in at 3.5% compared to the expected 3.3%. Durable Goods Orders also beat expectations, while Personal Spending and the CB Leading Index disappointed the market in November. The pair finished the choppy day close to unchanged after the release of the mixed numbers. Volatility could remain low in the coming days.
Our assessment: EUR/USD hit 1.05 yesterday, but fell back below the prior low near 1.0475. The long-term trend remains bearish, despite the recent consolidation.
