Throughout the week, there will be few Eurozone data releases, except for the Purchasing Managers’ Indices on Friday. The market could gain information mainly from the words of the numerous ECB members, who will speak in the coming days, says Commerzbank FX analyst Antje Praefcke.
Too many ECB spokespersons to keep up
“The ECB, like the Fed, will increasingly focus on the economic outlook thanks to ongoing disinflation. And the signs here have not been very encouraging recently, with the economy remaining fragile. Therefore, it is likely that ECB officials are cautious about growth prospects, but this is not a new perception. The market is already pricing in rate cuts as high as 2% by mid-2025 and even going a little further into the fall. “ECB officials would therefore have to sound much more worried to further depress interest rate expectations, but there is currently no reason for this. So the words are unlikely to be followed by actions in the market.”
“The euro is therefore likely to be driven primarily by economic data. Friday’s leading indicators could provide an indication of how the economy will develop in the coming months. However, those expecting strong boosts could be disappointed. It is The headline PMI is likely to remain at the 50 mark in November, just above the threshold between recession and slight growth. The industry remains a drag, as this sub-index is likely to stabilize at best at one level. very low. In this sense, The familiar information is likely to hold: the industry continues to weaken, so the winter semester remains difficult and the economy moves slowly. Only an unexpected outlier in either direction in the PMI, which is highly unlikely, could. lead to a more pronounced move in the euro before the weekend.”
“Although there is little data on the agenda in the US this week, the flow of news about the plans of the new US president-elect will probably continue to determine events in the EUR/USD anyway. In this sense, It is also mainly the words that count for the market on the US dollar side. And as in recent weeks, the dollar is likely to continue setting the tone in the EUR/USD. However, many of the staff decisions. the new US administration already know each other. When the new administration takes office it will become clear exactly which of Trump’s plans will be implemented. Therefore, in the absence of any big surprises, I expect EUR/USD to trade sideways this week in the absence of momentum.”
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
