Global macro overview for 02/12/2015:
The inflation data from the eurozone has hit the wires earlier today with the figures regarding producer and consumer price index. Both of the indices have unexpectedly dropped below the market consensus levels. The PPI rose 3.1% vs. 3.2% expected and 3.2% prior and the CPI increased 0.1% vs. 0.2% expected and 0.1% prior. This means that market participants expect the ECB to change its current policy at its meeting on Thursday. Possible scenarios include lowering the deposit rate below the current -0.20% or extending the current QE program up to September 2016.
The EUR/USD pair is trading at its lowest levels since April after the negative reaction to the inflation figures. The next support is seen at the level of 1.0565.