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EUR/USD hovers around its Wednesday’s opening price at around 1.1750 virtually unchanged amid a scarce economic docket in the US that witnessed a Dollar recovery. Meanwhile, inflation figures from the Eurozone (EZ) and business confidence deterioration in Germany, kept the single currency pressured.

Single currency trades flat as softer Eurozone inflation and weak German sentiment offset dovish Fed rhetoric

In the US, Atlanta Fed President Raphael Bostic crossed the wires, saying that the he expects GDP growth is solid and that he expects the trend to continue in 2026. Earlier, Fed Governor Christopher Waller struck neutral to dovish comments, saying that he supports further easing the next year.

Ahead, the US docket will feature inflation figures and the US, and Initial Jobless Claims for the week ending December 13.

Across the pond, inflation in EZ dipped a relief for the European Central Bank (ECB) which hinted that the easing cycle was done. German’s IFO Business Confidence poll reported that sentiment deteriorated for the second straight month.

Traders’ eyes shift to ECB’s December monetary policy meeting, which is expected to be an event that would not move the needle, as President Christine Lagarde and Co., are expected to hold rates unchanged, for this meeting and for the whole next year.

In the meantime, the conflict between Russia and Ukraine could be a headwind for the Euro. The Ukrainian President Zelenskiy exerts pressure on Europe, saying that they should use Russia’s frozen assets to end Putin’s appetite for war.

Politico revealed that the US and Russia would hold talks over Ukraine war in Miami this weekend.

Daily digest market movers: Euro steadies ahead of ECB’s meeting

• Raphael Bostic said that although a close call, “inflation is more worrying than jobs.” He said that GDP growth is solid and that a stronger economy “will take pressure off the job market.”
• Fed Governor Christopher Waller said that recent rate cuts have supported the labor market, noting that policy remains 50 to 100 basis points above neutral. However, he stressed that there is no urgency to deliver additional easing, adding that inflation is unlikely to reaccelerate.
• The US Bureau of Labor Statistics (BLS) reported that Nonfarm Payrolls increased by 64K in November, topping forecasts of 50K and rebounding from October’s revised –105K decline. However, the Unemployment Rate rose to 4.6% from 4.4%, overshooting the Federal Reserve’s 4.5% projection.
• Meanwhile, US Retail Sales stalled in October, unchanged on the month after a 0.1% gain in September and below expectations for a modest increase. In contrast, control-group sales, which feed directly into GDP calculations, rebounded sharply, rising 0.8% after a prior 0.1% contraction.

Technical outlook: EUR/USD remains bullish above 1.1700

EUR/USD consolidates in the mid-range of the 1.1700-1.1800 area as traders wait for the ECB’s decision. The Relative Strength Index (RSI) is bullish an indication that buyers are in control. But their lack of strength to clear 1.1800, would pave the way for further downside.

If EUR/USD clears 1.1800, expect a test of the 1.1850 region and, ultimately, the yearly high at 1.1918. Otherwise, the EUR/USD could drop below 1.1700, clearing the path to challenge the 100-day Simple Moving Average (SMA) near 1.1651, ahead of the 1.1600 handle.

(Click on image to enlarge)

EUR/USD daily chart

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