The headlines:
- France Q3 final GDP -0.1% vs +0.1% q/q prelim
- France November preliminary CPI +3.4% vs +3.7% y/y expected
This just adds more reason for the ECB to hold and also draws in the argument that perhaps we might get rate cuts sooner rather than later in the Eurozone. That especially as the economy is on the softer side heading towards year-end, although a hard landing seems to be avoided for now.
EUR/USD is now down 0.2% to 1.0946 as the retreat from 1.1000 looks to be gathering a bit of pace. Drilling down to the near-term chart, the pair has dropped below its 100-hour moving average of 1.0958 and now threatens a push towards the 200-hour moving average of 1.0938.
A break below the latter will see sellers seize back near-term control and wrestle back some momentum to correct price lower after the rejection at the 1.1000 mark.
Elsewhere, the euro is also struggling against the pound with EUR/GBP now down 0.2% to 0.8627 and breaking below its 100-day moving average at 0.8637.
At this stage, the ECB looks to be going toe-to-toe with the Fed - at least in terms of market pricing - on who might be cutting interest rates first next year.
