Ella 
In early Asian trading on Thursday, the euro/dollar rose for the second consecutive day. EUR/USD’s rebound is supported by a weaker US dollar. Traders are awaiting Thursday’s release of the U.S. Consumer Price Index (CPI) to bring new impetus to the market, with inflation estimated to have increased at a monthly rate of 0.2% in December and an annual rate of 0.3%. As of press time, EUR/USD was trading at 1.0977, up 0.11% on the day.
Late on Wednesday, European Central Bank (ECB) Governing Council member Pablo Hernandez de Cos said the euro zone may not be able to achieve economic growth in the final three months of 2023, The ECB will focus over the coming months on different developments that could affect the path of inflation and the resulting monetary policy measures.
Luis de Guindos, deputy president of the European Central Bank, said the euro zone economy may have entered recession last quarter and the outlook is bleak. He also supports current interest rate levels. At the same time, ECB member Isabel Schnabel stressed that the central bank is on the right track to curb inflation. She also cited geopolitical tensions as one of the upside risks to inflation.
