- EUR/USD turns southwards after hitting a 2-month high.
- ECB Minutes point to recovery losing steam.
- German Consumer Confidence deteriorates in December.
Bears drag EUR/USD back under the 1.1900 mark on Thursday.
EUR/USD slips dovish ECB, pandemic
EUR/USD moves back into the red after two straight days of gains and despite hitting a high of 1.1940/45 earlier in the session.
Rising covid cases and the economic fallout of the covid resurgence are dragging on risk sentiment overshadowing vaccine optimism and improving clarity surrounding US political scenario. ECB Minutes highlighted that loss of momentum in the economic recovery in Q4 and reiterated that growth risks remain tilted to the downside. , ECB’s P.Lane said that the road to recovery in the region will likely be long and full of risks. A longer period of lower inflation (than projected) is expected.
GFK German Consumer Confidence declined to -6.7for December. Back to the ECB, the M3 Money Supply expanded at10.5% YoY in October, whilst Private Sector Loans rose 3.1% on an annual basis.