Eurozone inflation for November surprised to the downside but data was unable to move EUR/USD significantly. Economists at Commerzbank expect the pair to remain at current levels for now.

ECB is likely to continue moving in sync with the Fed

“Inflation data is likely to be sufficient to give the doves on the ECB board the upper hand at the December meeting. Even though yesterday’s data did not provide a convincing picture of falling inflation pressure due to the heavy fluctuation of energy prices. But for now, it is quite possible that inflation might have peaked in the euro zone too. That means the ECB is likely to continue moving in sync with the Fed and also reduce the speed of its rate hikes.”

“If the hawks amongst the Fed and ECB do not manage to influence market expectations significantly again there is a lot to suggest that EUR/USD will trade around current levels for now.”