• EUR/USD stays sideways around 1.0800 ahead of key economic data releases from both the Eurozone and the US.
• The French economy rose by 0.4%, as expected, in the third quarter of the year.
• Trump’s victory in the US presidential election could have an adverse impact on the Eurozone growth.

EUR/USD trades close to Tuesday’s high slightly above 1.0800 in Wednesday’s European session. The major currency pair remains sideways for a third consecutive day as investors await key macroeconomic data from both the Eurozone and the United States (US) that is likely to inject volatility into the pair. 

In Europe, the October preliminary Harmonized Index of Consumer Prices (HICP) data from Germany and six of its states, and from Spain will indicate whether inflationary pressures continue to remain within the European Central Bank’s (ECB) target of 2%.

Economists estimate the German HICP to have grown at a faster pace of 2.1% from 1.8% in September, while inflation in Spain is expected to have remained below 2%.

Unless there is a big upside surprise, the impact of the inflation data is expected to be less significant on the ECB’s interest rate action in its upcoming policy meeting in December as officials see price pressures softening faster than what the central bank had anticipated.

Recent commentaries from ECB policymakers have indicated that they are worried about inflation remaining persistently lower due to weakening economic growth. Market participants are worried about the outlook of the Eurozone economy.