EUR/USD is sitting exactly in the middle of what could prove a multi-week 1.1180-1.1380 trading range – bordered by Omicron and Fed news. In the view of economists at ING, the November US jobs release could drag the pair down to the lower end of the range on a strong report.

EUR/NOK unlikely to hold above 10.30 for long

“While a strong NFP report today could see the lower end of the 1.1180-1.1380 range tested, investors may be reluctant to chase the move too much lower for fear of some more damaging Omicron news or uncertainty about the European Central Bank's attitude to inflation and ending emerging QE schemes when it meets on Thursday, December 16. That certainly is going to be a big meeting.”

“News of further lockdowns across continental Europe hardly proffers the euro as a safe haven currency of choice and one suspects that EUR/JPY stays under pressure. And while it is not a very fashionable view, we doubt EUR/NOK holds above these 10.30+ levels for long. We forecast Brent averaging close to $75/bl next year, which should keep the undervalued NOK in demand on any near-term weakness.”

See – NFP Preview: Forecasts from 10 major banks, strong print to reinforce Fed's recent hawkish pivot