EUR/USD holds tight around 1.1610 – BBH

EUR/USD remains range-bound near 1.1610, with support at 1.1500 and resistance at the 100-day moving average of 1.1644. Eurozone November CPI data reinforces the ECB’s on-hold stance, with headline inflation at 2.2% y/y and core CPI steady at 2.4% y/y, BBH FX analysts report.

Eurozone inflation shows slight rise, ECB bias unchanged

“EUR/USD is trading in a tight range around 1.1610. EUR/USD appears to have carved out a bottom at 1.1500, with next key resistance at 1.1644, the 100-day moving average.”

“The Eurozone preliminary November CPI supports the ECB’s on hold bias. Inflation is running slightly above the ECB’s 2% medium-term target. Headline CPI rose 2.2% y/y (consensus: 2.1%) vs. 2.1% in October, core CPI printed at 2.4% y/y (consensus: 2.4%) for a third straight month, and services CPI increased 0.1pts to a seven-month high at 3.5% y/y because of base-effect.”

“On a month-over-month basis, headline CPI fell -0.3% vs. 0.2% in October driven by a -0.8% decline in services prices.”