Italy November final CPI +1.1% vs +1.2% y/y prelim

• Prior 1.2%
• HICP +1.1% vs +1.1% y/y prelim
• Prior +1.3%

Slight delay in the release by the source. Core annual inflation is seen slowing down from 1.9% to 1.7% in November, so that’s something to at least take note of. That said, the sticking point for inflation for the ECB is still very much the German economy at this point. So, that’s going to continue to keep them boxed in the current position of not moving on rates.

As things stand, traders are not anticipating any major moves by the ECB even through to next year. That being said, things can still change depending on data developments in the months ahead. But for now, the outlook seems to be clear that the ECB won’t be afforded much room to make another move in terms of rate cuts. And policymakers are also of the same view with markets at the very least, even if they would like some added flexibility as an option.

EUR/USD trades at 1.1753 currently, having little to do on the day amid a more mixed PMI showing with little to offer before we get to the slew of US data later. Large option expiries at 1.1750 will continue to keep things in check, acting as a magnet for price action in European trading at least.

This article was written by Justin Low at investinglive.com.