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EUR/USD eyes upside after holding 1.15 support in November – DBS

EUR/USD may extend gains in December after holding 1.15 support, as ECB President Lagarde is expected to signal rates are appropriate, supporting the euro amid a resilient Eurozone economy and stable conditions in France, DBS' Senior FX Strategist Philip Wee notes.

ECB seen maintaining deposit rate at 2% through 2026

"EUR/USD may eye higher levels in December after finding firm support at 1.15 throughout November. In contrast to the Fed, the case has strengthened for the European Central Bank to maintain the deposit facility rate at 2% through 2026."

"Appearing before the European Parliament on December 3, ECB President Christine Lagarde will likely convey that interest rates are at the correct level amid optimism for the resilient Eurozone economy later in the year and the situation in France."

Gold hits six-week high on risk-off mood and Fed rate cut bets

Gold (XAU/USD) kicks off the new month on a firm footing, climbing to its highest level since October 21 on Monday, as risk-off sentiment underpins safe-haven demand, while traders gear up for another interest rate cut by the Federal Reserve (Fed) at its December 9-10 monetary policy meeting.
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USD: Geopolitical gocus on Ukraine peace talks as US softens deadline – ING

Geopolitical news should remain central today. The US has softened its stance on Thursday’s deadline for Ukraine to accept the peace deal with Russia, and a new 19-point deal is set to be discussed in the coming days.
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