EUR/USD steady at 1.05 as core inflation holds, ECB rate cuts limited

EUR/USD traded flat near 1.0500 as Eurozone's November final CPI came in at 2.1% year-over-year, slightly below the preliminary 2.2% reading. Core inflation remained unchanged at 2.4%, matching October's level and maintaining pressure on the European Central Bank. Germany's persistent inflation concerns continue to complicate ECB policy decisions, forcing policymakers to maintain their cautious stance despite broader economic weakness. Q3 wage data released alongside CPI figures suggests labor cost pressures remain elevated across the region. The steady core inflation reading reinforces market expectations that the ECB will pause rate cuts in December, with traders pricing in only a 25% probability of easing. Technical resistance for EUR/USD sits at 1.0550, while support holds at 1.0470. The pair's near-term direction hinges on this week's ECB meeting and any signals about 2025 policy trajectory.