EUR/USD remains firm as markets prepare for an eventful week, including the European Central Bank (ECB) meeting, EU Council decisions on Ukraine and Mercosur reparations, and key euro zone data releases. Chris Turner, FX analyst at ING, notes that resistance at the 1.1750/60 area will likely determine whether the pair is able to test the 1.1800 area.
EU Council meeting key to Ukraine loan and Mercosur agreement
“EUR/USD is holding on to last week’s gains. Not only do we have an ECB meeting, we also have a European Council meeting. Here, EU leaders will try to sign a reparations loan for Ukraine and also a trade deal with Mercosur. The meeting will be a key test of whether Europe can get things done or bow to domestic interests, like Belgium on Ukraine’s loan or French farmers on Mercosur.”
“Away from politics, we also have a lively data calendar. Tomorrow marks the release of flash PMIs for December, which will reveal whether recent optimism continues into the final month of the year. Following the final release of the November CPI on Thursday, the week concludes with a look at eurozone consumer confidence on Friday. Better confidence should be a key driver of eurozone growth in 2026, given higher savings rates among consumers in the region.”
“The 1.1750/60 area now represents important intra-week resistance for EUR/USD, and non-farm payrolls data and the ECB meeting are likely to be the biggest determinants of whether EUR/USD ends the week at our preferred 1.1800 target.”
