The Euro is rising a little bit. Overview for 12.12.2018

The major currency pair is attempting to rise; the news is pretty calm so far.

EURUSD is quite stable on Wednesday evening. The current quote for the instrument is 1.1338. 

The statistics published in the afternoon showed that the Industrial Production in the Euro Area added 0.2% m/m in October, the same as expected. In the previous month, the indicator lost 0.6% m/m. On YoY, it expanded by 1.2%.

The components of the report show that the Capital Goods increased by 1.0%, while the Durable Consumer Goods added only 0.4%. Otherwise, the Energy Production dropped by 1.7%, probably due to warm weather. 

Investors’ attention is slowly switching to the European Central Bank meeting that is scheduled for tomorrow. The regulator is going to have the last meeting this year and expected to decide on the benchmark rate. Market players believe the time for revision hasn’t come yet and there won’t be any rate hikes. However, one thing should be interesting for sure: will the ECB shut down the QE program or introduce some kind of an intermediate stage similar to Twist in the USA. 

Apart from this, it will be interesting to learn about future steps in the regulator’s monetary policy. Investors are currently discussing the next time the regulator may increase the rate and one of their options is October 2019. In any case, during the ECB meeting and the following press conference by the ECB Governor Mario Draghi, volatility in the major currency pair will surely increase.