EUR/USD holds above key 1.1500 support – BBH

EUR/USD remains above 1.1500 as Eurozone economic activity shows resilience and the ECB is expected to stay on hold, limiting downside against a still-restrictive Fed, BBH FX analysts report.

ECB near end of easing as policy approaches neutral

"EUR/USD is holding above support at 1.1500. Germany’s IFO business expectations index unexpectedly dips in November to 90.6 (consensus: 91.6) vs. 91.6 in October but remains indicative of an ongoing recovery in Eurozone economic activity."

"We think the ECB is done easing as policy is close to neutral while the Fed has more cuts in the pipeline (85bps price in the next twelve months) given that policy is still restrictive. Relative ECB/Fed policy stance suggests EUR/USD will struggle to sustain an undershoot below its 200-day moving average (1.1405)."