EUR/USD rises above 1.0350 daily in the European market. As expected, Eurostat reported that the Eurozone’s annual Core HICP was 5% in November. Investors await US data and Powell’s speech.

EUR/USD slowed before reaching 1.0400 on Tuesday and has been in a tight range since. Technically, the pair isn’t moving, but the day’s significant macroeconomic events could break it out of its content.

Even though Wall Street’s main indexes dipped following the opening bell on Tuesday, the US Dollar did nicely. It prevented EUR/USD from rising. Risk sentiment is neutral as US market index futures open Wednesday flat.
Eurostat will issue November HICP at 1000 GMT. Germany’s Destatis reported a 10% drop in the CPI from October’s 10.4% on Tuesday. Eurozone annual HICP might drop to 10.4%, while Core HICP may remain at 5%.

The Euro may sell off if Core HICP declines more than predicted. The ECB may hike rates by 50 bps in December if inflation falls. Policymakers have requested slower policy adjustments. If Core HICP exceeds expectations, EUR/USD may rise. ECB President Christine Lagarde told investors this week that interest rates will remain their primary inflation-fighting tool.

Conclusion

End-month flows pushed EUR/USD below 1.0300. Mixed macroeconomic data strengthen the US Dollar Index as investors wait for FOMC Chairman Jerome Powell to speak.