Euro Stabilizes as Investors Revise Their Expectations of an ECB Rate Hike

The  euro today traded in  a  stable rage against the  US dollar as  investors revised their expectations of  a  rate hike by  the  ECB. The  single currency was not appealing to  investors who have had to  deal with weak data releases from the  eurozone and  a  dovish European Central Bank.
The  EUR/USD currency pair today traded in  range marked by  a  high of  1.1409 and  a  low of  1.1385, but was attempting to  break higher at  the  time of  writing.
The  currency pair has been trading directionless for  the  past two days largely due to  the  low volatility witnessed in  the financial markets. The  release of  a  poll by  Reuters indicated that most analysts have revised their expectations of  a  rate hike by  the  ECB from Q3 this year to  Q4. There are also other analysts who have completely ruled out the  possibility of  an  ECB rate hike this year. The  release of  the  eurozone current account data for  November also did not help the  euro. According to  the  ECB, the  current account stood at  â‚¬20.3 billion versus the  expected €24.1 billion, which worried investors.
The  stronger US dollar as  tracked by  the  US Dollar Index, which hit a  high of  96.13 today, also stalled the  pair’s rally. The  low volatility conditions in  the  market also limited the  currency pair’s movement.
The  pair’s short-term performance could be affected by  the  release of  US industrial production data and the UoM consumer sentiment survey later today.
The  EUR/USD currency pair was trading at  1.1405 as  at  10:57 GMT having risen from a  low of  1.1385. The  EUR/JPY currency pair was trading at  124.76 having rallied from a  low of  124.29.

If you have any questions, comments or opinions regarding the Euro,
feel free to post them using the commentary form below.