Dec. 12: European session
European stock markets are trading in the red for a third day in a row. Tuesday's congressional budget deal has boosted the expectations for the US monetary stimulus to be reduced in December. Eurostoxx 50 index is losing 0.24% as of writing.
The ECB’s president Mario Draghi said that the central bank is well aware of downside risks low inflation poses, but doesn’t see deflation in Europe. According to Draghi, the ECB has plenty of instruments and is ready to act. There’s really nothing new compared with the previous week, but EUR/USD corrected to $1.3765. EUR/CHF which spiked earlier up to 1.2244 on the comments from the SNB formed a shooting star at H4 and declined by 20 pips.
GBP/USD has recovered from the daily low of $1.6350 to $1.6400. USD/CHF has hit a two-year low, testing the levels below the $0.8890 support.