Reuters reported that the European Central Bank’s governing council member Mario Centeno said on Tuesday the current process of interest rate increases is approaching its end.
”The central banker, who was answering Portuguese legislators during a committee hearing in Lisbon, added even though inflation may have some resistance in January and February it will resume falling in March.”
We are approaching the end of the interest rate rise process.
Inflation may have some resistance in January and February but will fall again in March.
EUR/USD is extending the bullish rally on Tuesday and has been trying to print a fresh high for this week’s initial balance, taking the US Dollar down to 1.0759 vs. the Single Currency on the bull’s quest for a test towards 1.0800. However, as the analysis above hints, a bull trap could be in the making but Thursday’s US Consumer Price Index data will be waited for as a potential catalyst as the following daily chart analysis illustrates: