Euro nosedives following France’s Q3 contraction

The final GDP for France’s third quarter fell by 0.1% from the preliminary estimate, and the euro is currently trading at 1.0893. The preliminary CPI for France in November was +3.4%, suggesting that rate cuts in the Eurozone might occur sooner rather than later. This is because the economy is weakening as the year draws to a close.

The euro/dollar pair is currently advancing towards the 200-hour moving average, which is 1.0938, after falling 0.2% to 1.0946. Sellers will be able to take back short-term control and adjust the price lower if there is a break below this level.

The euro is underperforming the pound at the moment, with EUR/GBP falling 0.2% to 0.8627 and breaching its 100-day moving average at 0.8637. at the time of writing, the EUR/GBP is trading at 0.8626.

There is a current competition between the Fed and the ECB over who will lower interest rates first in 2024.