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."