Euro Unchanged Ahead Of U.S. Consumer Confidence
MarketPulse | Dec 27, 2016 07:07AM ET
The euro is almost unchanged in the Tuesday session, as EUR/USD trades at 1.0450. There are no European releases until Thursday. In the US, today’s highlight is CB Consumer Confidence, with the indicator expected to climb to 108.9 points. On Wednesday, the US releases Pending Home Sales, with the markets anticipating a strong gain of 0.6%.
The week between Christmas and New Year’s tends to be subdued on the markets, but on the European banking front, things are anything but calm. On Friday, the Italian government agreed to bail out Monte dei Paschi (MI:BMPS), one of Italy’s largest banks, after the bank failed to raise EUR 5 billion from investors. However, the ECB has now said that the capital shortfall is much higher, to the tune of EUR 8.8 billion.
The ECB tried to calm down nervous markets, saying that the bank remains solvent, while acknowledging that the bank’s liquidity position had rapidly deteriorated. The European banking sector remains vulnerable, as underscored by Deutsche Bank’s recent troubles. If investor confidence in the banking sector weakens, the euro could lose ground.
The US economy continues to expand at a brisk clip, as underscored by the most recent revision to third quarter GDP. The Final GDP reading of 3.5% beat the estimate of 3.2%. This figure marked an upward revision of the previous GDP estimate of 3.2%. The stellar reading can be attributed to stronger consumer spending and an increase in business investment, and marked the strongest growth rate since the third quarter of 2015.
US indicators ended the week on a high note. New Home Sales jumped to 592 thousand, which translated into an increase of 5.2%. This easily beat the forecast of 575 thousand. There was more good news from UoM Consumer Sentiment, which climbed to a 12-year high, with a reading of 93.8 points. The indicator was sharply higher than the previous reading of 93.2 points. The survey found that consumers are optimistic that the economy will continue to improve under Donald Trump. The president-elect has said he will cut taxes while increasing fiscal spending in order to pay for massive infrastructure improvements. The survey also noted that consumers expect economic growth to create new jobs and raise incomes.
EUR/USD Fundamentals
Tuesday (December 27)
- 14:00 US S&P/CS Composite-20 HPI. Estimate 5.0%
- 15:00 US CB Consumer Confidence. Estimate 108.9
- 15:00 US Richmond Manufacturing Index. Estimate 5 points
Wednesday (December 28)
- 15:00 US Pending Home Sales. Estimate 0.6%
*All release times are GMT
* Key events are in bold
EUR/USD for Tuesday, December 27, 2016
Get The News You Want
EUR/USD December 27 at 10:00 GMT
Open: 1.0426 High: 1.0456 Low: 1.0425 Close: 1.0451
EUR/USD Technical
| S1 | S2 | S1 | R1 | R2 | R3 |
| 1.0170 | 1.0287 | 1.0414 | 1.0506 | 1.0616 | 1.0708 |
- EUR/USD posted small gains in the Asian session and is flat in the European session
- 1.0414 is providing support
- 1.0506 is the next resistance line
Further levels in both directions:
- Below: 1.0414, 1.0287, 1.0170 and 1.0028
- Above: 1.0506, 1.0616 and 1.0708
- Current range: 1.0414 to 1.0506
OANDA’s Open Positions Ratio
EUR/USD ratio remains unchanged this week. Currently, long positions have a majority (57%), indicative of trader bias towards EUR/USD continuing to move upwards.
Original post
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.