The US dollar continues to stay comfortably above 106.00, staying resilient against other major currencies ahead of the CPI data later today.
CPI YoY is forecasted to rise 2.7% in November, following a 2.6% increase in October. Core CPI MoM, excluding volatile food and energy prices, is expected to rise by 0.3%, matching last month’s data.
EURUSD briefly broke below the 1.0500 level earlier this morning as the pair faces headwinds from cautious market mood based on US inflation data and ECB rate cuts.
Lingering inflation in Europe has increased chances of a 25bps cut from the ECB tomorrow, with November data showing renewed price pressures and rising wages.
Cable continues to trade in a tight range near 1.2750 as US CPI data comes out later today.
The pound is struggling for direction amid light UK economic data. There are expectations for the BoE to keep interest rates unchanged at 4.75% next week as price pressures continue.
World News
USDCAD recently reached 1.4200, its highest level since April 2020, as the pair stays in a consolidation phase above 1.4150 ahead of the Bank of Canada (BoC) rate decision later today. Markets bet the BoC to cut rates by 50bps, reaching 3.25% and getting closer to their target rate.
