EUR/USD slides toward 1.1670 amid steady ECB guidance – BBH

EUR/USD is trading lower near 1.1670 as the ECB’s latest consumer survey shows inflation expectations holding steady, supporting the case for rates to remain at 2.00%, BBH FX analysts report.

ECB survey signals inflation on target

"EUR/USD is trading heavy near 1.1670. The ECB’s November CPI consumer survey of expectations reinforces the case that the ECB is in a good place to keep rates on hold at 2.00%. 1-, 3-, and 5-years inflation expectations were unchanged at 2.8%, 2.5%, and 2.2%, respectively, and consistent with inflation stabilizing at the ECB’s 2% medium-term target."

"Bottom line: we expect EUR/USD to hold above 1.1500 over the next few months."