Danske Research discusses EUR/USD outlook around next week's ECB December policy meeting.
"For EUR/USD, the ECB meeting will conclude a busy week that also includes US CPI and the FOMC meeting. Overall, we do not expect a ‘hawkish 50bp hike’ will leave a big impact on EUR/USD, but it depends on the momentum heading into the meeting," Danske notes.
"The market may feed off a hawkish ECB, if US CPI inflation drops again and the Fed comes across as dovish and sends EUR/USD to new highs. Vice versa, higher US CPI inflation may turn around momentum in EUR/USD, send it back down and leave the ECB meeting less relevant," Danske adds.