EUR/USD continues to have a quiet week. Currently, EUR/USD is trading at 1.1887, up 0.24% on the day. In economic news, there are no eurozone events on the schedule. In the U.S, the markets are expecting a strong release from CB Consumer Confidence, with an estimate of 128.2 points. Pending Home Sales is forecast to decline by 0.4%. On Thursday, the US releases unemployment claims, which is expected to drop to 241 thousand.
Recent US housing reports beat expectations, and the markets are hoping for a similar result from Pending Home Sales. Last week, Housing Starts came in at 1.30 million, beating the forecast of 1.25 million. On Tuesday, New Home Sales sparkled, with a gain of 733 thousand. This easily beat the estimate of 654 thousand, and was the highest reading since September 2007.
The week of Christmas is light on fundamentals, with only a handful of economic indicators. On Friday, Germany releases Final CPI, with the markets forecasting a strong gain of 0.5%. If Final CPI meets or exceeds the estimate, the euro should gain some ground against the US dollar. In November, the indicator improved to 0.3%, marking a 4-month high. In the eurozone, annual average inflation also inched higher to 1.5% in November, up from 1.4% in October. This marked a multi-year high. In a nod to stronger economic activity in 2017, the ECB raised its forecasts for growth and inflation for the eurozone from this year through to 2019. Still, inflation remains well below the ECB target of around 2.0%, and ECB policymakers are unlikely to announce an end to their stimulus package until inflation moves closer to the 2.0% target.
Wednesday (December 27)
- 10:00 US CB Consumer Confidence. Estimate 128.2
- 10:00 US Pending Home Sales. Estimate -0.4%
Thursday (December 28)
- 8:30 US Unemployment Claims. Estimate 241K
*All release times are GMT
*Key events are in bold
EUR/USD for Wednesday, December 27, 2017
EUR/USD for December 27 at 5:55 EDT
Open: 1.1859 High: 1.1891 Low: 1.1855 Close: 1.1887
EUR/USD has posted small gains in the Asian and European sessions
- 1.1876 was tested earlier in support. It is a weak line and could see further action in the Wednesday session.
- 1.1961 is the next resistance line
Further levels in both directions:
- Below: 1.1876, 1.1777, 1.1657 and 1.1574
- Above: 1.1961, 1.2092 and 1.2221
- Current range: 1.1876 to 1.1961
OANDA’s Open Positions Ratio
In the Wednesday session, EUR/USD is unchanged. Currently, short positions have a majority (61%), indicative of EUR/USD reversing directions and moving downwards.