MarketPulse | Dec 29, 2017 05:10AM ET
EUR/USD continues to rally, as the pair trades at its highest level since September 22. Currently, EUR/USD is trading at 1.1966, up 0.20% on the day. The final trading day of 2017 has just one key event, German Preliminary CPI. The indicator is expected to accelerate to 0.5% in December. In the eurozone, M3 Money Supply and Private Loans both matched their estimates of 4.9% and 2.8%, respectively.
Christmas week is traditionally light on economic releases and the markets are in slow gear until after New Years’. Still, the euro has looked sharp and is up about 1.0% this week, with the symbolic 1.20 line in striking distance. The US dollar has been under pressure, and disappointing consumer confidence and unemployment numbers didn’t help the cause. We could see the greenback rebound in January, as the US economy continues to show strong growth and the Federal Reserve is widely expected to raise rates for a second straight month at its January policy meeting.
In a nod to stronger economic conditions in the eurozone, the ECB announced in October that it would begin tapering its monthly bond purchases in January, from EUR 60 billion to 30 billion. Mario Draghi & Co. are playing it safe, however, as the ECB has extended the purchases through September 2018. If inflation remains below the ECB target of around 2.0%, the purchases will likely continue after that date. Economic growth in the bloc has been steady, with GDP expanding 0.7% in the the third quarter, after a 0.6% in the second quarter. Of note, the ECB upwardly revised its 2018 growth forecast from 1.8% to 2.3%.
EUR/USD Fundamentals
Friday (December 29)
*All release times are GMT
*Key events are in bold
EUR/USD for Friday, December 29, 2017
EUR/USD for December 29 at 4:00 EDT
Open: 1.1943 High: 1.1965 Low: 1.1936 Close: 1.1966
EUR/USD Technical
S1 | S2 | S1 | R1 | R2 | R3 |
1.1777 | 1.1876 | 1.1961 | 1.2092 | 1.2222 | 1.2357 |
EUR/USD inched higher in the Asian session and has posted slight gains in European trade
Further levels in both directions:
OANDA’s Open Positions Ratio
EUR/USD ratio is almost unchanged in the Friday session. Currently, short positions have a majority (64%), indicative of EUR/USD reversing directions and moving downwards.
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