The highlight of the eurozone data calendar this week will be November price figures. EUR/USD registered its highest weekly close since late June at 1.0402 and could test the 1.0480/1.0500 region, economists at ING report.

Waiting for the next inflation print

“The question is whether inflation will fall back from the highs (not far from 11% year-on-year) and allow the European Central Bank to potentially soften its hawkish rhetoric a little. Currently, the market prices a 62 bps rate hike on 15 December.” 

“We cannot rule out EUR/USD trading back up to the 1.0480/1.0500 area again (though the reasons for that are far from obvious) but reiterate that the second half of the week could potentially push EUR/USD back to the 1.02 area.”