The Euro holds steady near the mid-1.16 range against the US Dollar as Monday’s North American session begins. This follows a period of consolidation, with the Euro maintaining its recent levels. <\/p>\n
The European Central Bank’s Schnabel has suggested the possibility of a future rate hike, impacting short-term rates markets. These markets have been easing off their dovish stance, with a marginal potential for a hike now being considered in the medium term.<\/p>\n
Euro-area and US yield spreads continue to support the Euro, showing a positive trend from previous negative figures. Euro-area data strengthens further, evidenced by impressive October industrial production figures at +1.8% month-on-month, surpassing the expected 0.3%.<\/p>\n
The Relative Strength Index is bullish, nearly reaching 60, as the Euro continues its consolidation around 1.16. Breaking the 50-day moving average at 1.1609 suggests potential gains towards 1.17, with little resistance around that level. Anticipated resistance lies above 1.18, with near-term expectations of the Euro trading between 1.16 and 1.17.<\/p>\n
The Euro is showing stability against the dollar, holding in the mid-1.16s. We are seeing a bullish technical picture, as the price has broken above its 50-day moving average of 1.1609. This suggests the recent consolidation could be a base for a move higher.<\/p>\n
Hawkish comments from the European Central Bank are fueling this strength, hinting at a potential rate hike. Recent data shows Eurozone inflation was a stubborn 3.1% in November 2025, well above the ECB’s target and higher than the U.S. rate of 2.7%. This policy divergence makes holding Euros more attractive.<\/p>\n
Given this outlook, we believe buying call options on the EUR\/USD is a prudent strategy for the weeks ahead. A strike price around 1.1700 with an expiration in late January 2026 would capture a potential move toward the 1.1800 resistance level. This approach offers a defined risk while allowing for upside if the Euro continues its climb.<\/p>\n
We’re not alone in this view, as the latest CFTC report showed speculative funds increasing their net long positions in the Euro. However, traders should be mindful that liquidity often thins out toward the end of December. This can lead to quieter markets or sudden, sharp price swings on low volume.<\/p>\n
Create your live VT Markets account<\/a>\u00a0and\u00a0start trading<\/a>\u00a0now. <\/b><\/p>\n","protected":false},"excerpt":{"rendered":" Euro stabilizes near 1.16; bullish RSI, strong data, and yield spreads support potential move toward 1.17.<\/p>\n","protected":false},"author":62,"featured_media":16959,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[59],"tags":[],"class_list":["post-36293","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-live-updates"],"acf":{"acf_article_selection_author":null},"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/posts\/36293","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/users\/62"}],"replies":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/comments?post=36293"}],"version-history":[{"count":0,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/posts\/36293\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/media\/16959"}],"wp:attachment":[{"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/media?parent=36293"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/categories?post=36293"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/tags?post=36293"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}