EUR/USD drifts down to 1.1670 as ECB maintains consistent policy – BBH

EUR/USD Slides as ECB Survey Points to Stable Inflation

The EUR/USD pair has edged down toward 1.1670, following the European Central Bank’s recent consumer survey, which indicates that inflation expectations remain steady. According to BBH FX analysts, this stability strengthens the argument for maintaining interest rates at 2.00%.

ECB Survey Highlights Steady Inflation Outlook

Recent data from the ECB’s November CPI consumer survey suggests that the central bank is well-positioned to keep interest rates unchanged at 2.00%. Inflation expectations for the next 1, 3, and 5 years were reported at 2.8%, 2.5%, and 2.2% respectively, aligning closely with the ECB’s medium-term inflation goal of 2%.

Analyst Outlook: Projections indicate that EUR/USD is likely to remain above the 1.1500 level in the coming months.