The euro strengthened on Wednesday as investors continued to draw optimism from prospects of a ceasefire in Ukraine and expectations of interest rate cuts in the world's largest economy.
Ukraine on Tuesday signalled support for the framework of a peace deal with Russia but stressed that sensitive issues needed to be fixed at a meeting between Zelenskiy and Trump.
The European Parliament approved a €1.5 billion scheme to fund defence investments across the EU and support Ukraine, while Britain separately pledged to deliver more air defence missiles to Kyiv in the coming weeks.
Europe's economy has fared better than expected this year amid US tariffs. The European Commission predicted a 0.9% increase for GDP in the euro area, and it's likely to raise that estimate later.
Hopes of a mild pickup to the 1.4% for 2026 predicted in May are looking unlikely though, with the ECB having anticipated 1% growth in its last forecasting round in September.
The bloc's business activity grew steadily this month as services expanded at the quickest pace in more than 2 years, while weak demand sent manufacturing back into contraction territory.
The bearish pennant signalled that the single currency would unlikely breach the 50 SMA resistance. Thus it seems reasonable to build short positions at around $1.1600.
Asset recap
As of market close on 25 November, among EBC products, Merck & Co shares led gains. Wells Fargo upgrades the stock to Overweight from Equal-Weight and raised price target from $90.00 to $125.00.
US gas price extended its losses from mid-November. Demand for gas has fallen as the busy summer traveling season has given way to an autumn slowdown, putting additional downward pressure on prices.
A report that Meta may shift billions in AI spending towards Google's custom chips sent Nvidia shares lower, signalling early signs of a potential shake-up in the company's near-monopoly of the market.
EBC Financial Group Disclaimer: This material is for general information purposes only and is not intended as (and should not be considered to be) financial, investment or other advice on which reliance should be placed. No opinion given in the material constitutes a recommendation by EBC Global Financial Collaboration or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person.
免責事項：本記事で述べられている見解は著者の見解のみであり、Followmeの公式見解を反映するものではありません。Followmeは、提供された情報の正確性、完全性、信頼性について一切責任を負いません。また、書面で明示的に記載されている場合を除き、本記事の内容に基づいて行われたいかなる行動についても責任を負いません。
