Core Viewpoint - The U.S. inflation data for November has led to a depreciation of the dollar, with discussions of potential interest rate cuts by the Federal Reserve expected to continue into January 2024. This contrasts with the European Central Bank's current stance of maintaining rates, suggesting a shift in relative yield dynamics that may support a bullish outlook for the euro against the dollar through 2026 [1]. Group 1 - The November inflation data in the U.S. has pressured the dollar lower [1] - Discussions regarding potential interest rate cuts by the Federal Reserve are anticipated to persist into January 2024 [1] - The European Central Bank is expected to remain inactive, indicating that its easing measures may have concluded [1] Group 2 - The relative yield differential between the U.S. and Europe is likely to drive the euro's appreciation against the dollar [1] - The euro to dollar exchange rate is projected to trend upwards until 2026 [1]

Group 1 - The core viewpoint is that the U.S. inflation data for November has led to a decline in the dollar, with discussions about potential interest rate cuts by the Federal Reserve expected to continue into January [1] - This situation contrasts with the European Central Bank, which is perceived to be on hold and possibly done with easing measures [1] - The analysis suggests that the relative yield differential between the U.S. and Europe will support a bullish outlook for the euro against the dollar, projecting an increase until 2026 [1]