The Euro is slowly reaching stability. Overview for 17.12.2018

The major currency pair is trading steadily on Monday. Investors are slowly getting back to buying the Euro. 

On Monday afternoon, EURUSD is growing a little bit and recovering after last Friday’s volatile trading session. The current quote for the instrument is 1.1340.

Last week, investors were avoiding risks by switching to the American currency due to weak numbers from China and completely unimpressive PMI reports from Germany and France. The statistics from the USA published on Friday evening were rather mixed, but market players simply ignored these negative signals. 

The Consumer Price Index final report published earlier today was also quite confusing: the indicator added 1.9% y/y against the first estimation of 2.0% y/y. At the same time, the Core CPI remained unchanged at 1.0% y/y. The inflation will be interesting to watch starting January 2019. Earlier, the European Central Bank was reported to have shut down the Quantitative Easing program during its December meeting, but the CPI still raised a lot of questions.  

No one can be absolutely certain that the inflation will remain close to 2% in the next six months. Most likely, the indicator will start losing the momentum by the end of the first quarter and the regulator will surely watch by how much. 

There will be no significant numbers from the USA. The one worth paying attention to is the NAHB Housing Market Index in December.