The EUR/USD pair experienced a significant overnight surge.
On Wednesday, the primary currency pair maintained the gains from the previous evening, with the current EUR/USD exchange rate reaching 1.0970.
Notably, inflation in the eurozone is exhibiting a confident decrease. In November, the CPI declined by 0.6% m/m, according to the final calculation. Year-on-year, inflation reached 2.4%, aligning with expectations. This marks a decrease from the 2.9% indicator recorded a month earlier.
The core CPI in November also saw a decline to 3.6% y/y from the previous 4.2%.
These developments reflect the European Central Bank's consistent and measured pursuit of its established strategy. Among central banks addressing inflation in the current fiscal cycle, the European CB stands out.
In the US, November saw a decrease in the number of granted building permits to 1.46 million from the earlier 1.49 million. However, the same month witnessed an increase in the number of newly built homes to 1.56 million from the previous 1.35 million.
High interest in risk within the currency market is providing substantial support to the EUR.