EUR/USD may extend gains in December after holding support at 1.15, as ECB President Lagarde is expected to signal interest rates are appropriate, supporting the euro amid a resilient euro zone economy and stable conditions in France, notes Philippe Wey, chief FX strategist at DBS.
The European Central Bank expects to keep the deposit rate at 2% until 2026
“EUR/USD may eye higher levels in December after finding strong support at 1.15 throughout November. In contrast to the Fed, the ECB’s case for keeping its deposit rate at 2% until 2026 has strengthened.”
“European Central Bank President Christine Lagarde is likely to convey to the European Parliament on December 3 that interest rates are at the right level amid optimism about the resilient euro zone economy later in the year and the situation in France.”
