EUR managed to strengthen. Overview for 20.12.2023

On Wednesday, the primary currency pair sustained gains from the previous evening. The current EURUSD exchange rate stands at 1.0970.

Inflation in the eurozone is finally decreasing and is doing so with confidence. In November, the CPI dropped by 0.6% m/m, according to the final calculation. Year-on-year, inflation decreased to 2.4%, meeting expectations. A month earlier, the indicator stood at 2.9%.

The core CPI in November dropped to 3.6% y/y from the 4.2%.

These developments result from the ECB consistently and unemotionally following its agreed strategy. If any central bank took the lead in conquering inflation in the current fiscal cycle, it was the European CB.

In November, the number of granted building permits in the US dropped to 1.46 million from 1.49 million earlier. However, last month, the number of newly built homes increased to 1.56 million from the previous 1.35 million.

Interest in risk in the currency market is high, providing support to the EUR.