ECB comments hinder the EUR

Daily Currency Update

The Swiss consumer price index fell by 0.2% in November, data showed yesterday. The fall was put down to lower prices for hotels and package holidays, as well as fuels and fruiting. The European Central Bank’s (ECB) president Lagarde spoke at the Academy of Moral and Political Sciences, in Paris which market participants were hoping for interest rate clues. However, the speech offered little. Australia maintained their interest rate overnight, after hiking rates by 25 basis points in October, citing the need for more macroeconomic data to spur another rate decision.
It has already been a busy morning with French industrial productions and a number of European Services PMI releases.

The former fell 0.3% on the month in October with the majority of services seeing an uptick, but below the 50.0 gauge showing contraction. ECB board member Isabel Schnable offered comment of note this morning, stating that further interest rate hikes are off the table given a remarkable fall in inflation and policymakers should not guide for rates to remain steady through mid-2024. Sterling jumped to 1.1675 against the EUR but has seen fallen and EUR/USD tested a fall below 1.0800 but recovered.