EUR has retreated. Overview for 18.12.2023

The primary currency pair stabilised its position on Monday. The current EURUSD exchange rate stands at 1.0910.

Volatility peaked on Thursday and Friday last week, driven by a mass of crucial statistics accumulated by the market. Now that the market has received all the necessary data, fluctuations are expected to diminish.

The meetings of the US Federal Reserve and the European Central Bank concluded as expected, maintaining the interest rates at 5.50% and 4.50%, respectively.

Previously, statistical data was more than sufficient. Retail sales in the US for November increased by 0.3% m/m after a decline in the previous month. Industrial production rose by 0.2%, slightly below the expected growth of 0.3%. In October, industrial production parameters declined by 0.9%. The US PMI in production for December saw a decrease to 48.2 points, marking a critical report. These data are unsurprising given the persistently high inflation.

In November, industrial production in the US fell below expectations, and the capacity utilisation index was not impressive either.

Now, the market has time to analyse the available data.