European Central Bank President Christine Lagarde said ahead of Parliament that inflation in the euro zone hasn't peaked yet and it could scale even higher levels. 

Lagarde asserted the ECB will raise interest rates multiple times at upcoming meetings. 

Global financial markets are waiting for crucial European consumer prices data for November, which will contribute to bets on the ECB rate hikes in December. 

European inflation hit record highs in October at 10.6%, so will it scale even fresher higher or will it finally taper off? 

The Timing

European consumer prices is expected to slip to 10.4% in November from 10.6% in October.

Lagarde

ECB President Christine Lagarde said ahead of the European Parliament that inflation hasn't reached its peak yet in the euro zone and could even reach higher peaks. 

Estimates

Analysts expected inflation to slide to 10.4% in November from 10.6% in October. 

Such a slip will take the edge off inflationary pressures on policymakers in the European Central Bank, however it's still probably hiking rates by 0.75% in December. 

It's not ruled out now that inflation might hit fresh record highs in November, which would make a 0.75% rate hike in December a certainty. 

Euro

A new record high in inflation will underpin euro against major rivals, as the ECB will continue to hike rates and tighten policies until inflation is brought under control. 

Gold prices rose in European trade on Tuesday, resuming the gains and almost touching two-week high as the dollar declined against a basket of major rivals. 

Investors await some new data to shed light on the Fed's upcoming December meeting and its rate decisions, with most analysts now expecting a 50 basis points hike. 

Gold Prices

Gold prices rose 1.1% to $1,759 an ounce, after closing down 0.8% yesterday, the first loss in five days on profit-taking away from two-week highs at $1,763. 

Gold lost ground on Monday after bullish remarks by some Fed officials, which once again raised chances of a 0.75% rate hike by the Fed in December. 

Fed Statements 

Fed Saint Louis President James Bullard said the ECB needs to raise interest rates by a bit more, while New York Fed President John Williams said the Fed needs to carry on its path of rate hikes.

Fed Rates

Such statements changed market bets on a 0.5% rate hike in December from 75% to  70%, while chanced of a 0.75% rate hike rose from 25% to 30%. 

The Dollar

The dollar index fell 0.6% on Tuesday, resuming losses after a two-day advance from three-month lows back then at 105.22 against a basket of major rivals.

The dollar fell today as risk appetite improved in the markets, while Asian stocks advanced, led by Chinese stocks, hurting demand on safe haven.

Investors now mostly expect Chinese authorities to control ongoing protests and alleviate some of the strict Covid 19 restrictions. 

Data 

Investors await a batch of important data later today, like the payrolls report for November, in addition to Fed Chair Jerome Powell's speech on Wednesday on the economy and inflation. 

The SPDR

Gold holdings at the SPDR Gold Trust fell 0.87 tones yesterday to a total of 908.09 tones. 

Euro rose in European trade today, resuming the gains against dollar after a two-day hiatus on profit-taking from five-month highs back then, with current gains coming amid estimates of a 0.75% rate hike by the ECB next month.

The greenback fell amid improving risk appetite in the market while demand on safe havens slow down, with investors expecting China to control the ongoing protest in China quickly. 

EUR/USD rose over 0.5% to 1.0394, after falling 0.55% yesterday, the second loss in a row on profit-taking, after hitting five-month highs earlier at 1.0496. 

European Rates 

Now markets almost fully expect the ECB to increase interest rates by 75 basis points in December instead of 50 basis points, following bullish remarks by ECB President Christine Lagarde. 

Investors await important European inflation data tomorrow for November to gauge final chances for a 0.75% rate hike by the ECB. 

The Dollar

The dollar index fell 0.5% on Tuesday, resuming losses after a two-day advance from three-month lows back then at 105.22 against a basket of major rivals. 

The greenback recouped recently following some bullish remarks by a few Fed officials that showed the Fed might still be aggressive in its policy tightening efforts. 

Fed Saint Louis President James Bullard said the ECB needs to raise interest rates by a bit more, while New York Fed President John Williams said the Fed needs to carry on its path of rate hikes.

The dollar fell today as risk appetite improved in the markets, while Asian stocks advanced, led by Chinese stocks, hurting demand on safe haven.

Investors now mostly expect Chinese authorities to control ongoing protests and alleviate some of the strict Covid 19 restrictions.