Anna 
The Euro to US Dollar exchange rate extended its decline, retesting the 1.0670 level on Wednesday.
On the other hand, in the backdrop of an overall weak risk environment, the US Dollar continued to strengthen, propelling the US Dollar Index (DXY) to hover around 105.80, while US Treasury yields remained in a consolidation phase.
Regarding monetary policy, market participants are increasingly aligning in their view that the Federal Reserve (Fed) may temporarily maintain its current monetary stance. The possibility of an interest rate adjustment in December has lost some steam, especially following the recent FOMC meeting and lower-than-expected October nonfarm payroll data, which added just 150,000 jobs.
The European Central Bank (ECB) is also experiencing a similar sentiment, as investors are leaning towards the belief that the central bank’s tightening measures may come to a prolonged pause, likely lasting into the second half of next year.
In the Eurozone’s economic calendar, Germany’s final inflation rate data for October revealed a year-on-year Consumer Price Index (CPI) growth of 3.8%, holding steady month-on-month. Later, Eurozone retail sales figures will be released.
