EUR/USD ticks down on thin volumes, German HICP eyed

EUR/USD falls as the US Dollar steadies in a thin-trading weekend due to holidays in the US on account of Thanksgiving Day.

ECB Schnabel ruled of risks of inflation undershooting ECB’s target. Investors await the German HICP data for fresh ECB interest rate guidance. EUR/USD ticks down on Thursday as the US Dollar (USD) steadies after a weak Wednesday. However, the near-term outlook of the Euro (EUR) has slightly improved after less-dovish remarks from European Central Bank (ECB) board member Isabel Schnabel in her interview with Bloomberg on Wednesday.

Schnabel pushed back expectations of an aggressive policy-easing cycle as she doesn’t see any risk of inflation undershooting the bank’s target. She argued that the central bank stimulus doesn’t address structural issues that the Eurozone is currently facing.

For more cues on the ECB interest rate path, investors will focus on the flash November’s Harmonized Index of Consumer Prices (HICP) data of Spain, Germany, and its six major states, which will be published in Thursday’s session. German HICP is estimated to have accelerated to 2.6% from 2.4% in October on year. Month-on-month HICP is expected to have deflated by 0.5%.