Ella 
EUR/USD fell on Thursday as the U.S. dollar (USD) stabilized after weakness on Wednesday. However, the near-term outlook for the euro (EUR) improved slightly after European Central Bank (ECB) Governor Isabel Schnabel made less dovish remarks in an interview with Bloomberg on Wednesday.
Schnabel pushed back on expectations for an aggressive policy easing cycle because she doesn’t think inflation will fall below the bank’s target. She believes that the central bank’s stimulus policy cannot solve the structural problems currently facing the euro zone.
For more clues on the path of the European Central Bank’s interest rates, investors will focus on preliminary November consumer price index (HICP) data for Spain, Germany and six major states released during the session on Thursday. German HICP growth is estimated to rise to 2.6% year-on-year from 2.4% in October. The monthly HICP predicts deflation of 0.5%.
Meanwhile, concerns that U.S. President-elect Donald Trump’s imposition of high tariffs could lead to a fall in euro zone exports have eased slightly, potentially providing more support for the bloc. According to MACE News, European Central Bank President Christine Lagarde said in an interview with the Financial Times (FT) during European morning trading on Thursday: “Trump lacks confidence in the level of tariffs that may be imposed on Europe. To be specific, this could signal that he is open to negotiations,” Lagarde added: “It will be difficult to make America great again if global demand falls due to trade tariffs.”
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