EUR/USD has started the week with slight gains. Currently, the pair is trading at 1.1402, up 0.28% on the day. There are no eurozone or U.S. indicators, so the markets are likely to be subdued as we head into Christmas.
U.S numbers were a mix on Friday. Final GDP came in at 3.4%, revised slightly from the initial reading of 3.5% in November. This was shy of the estimate of 3.5%, but still points to healthy economic growth in the third quarter. Durable goods reports were well short of their estimates. Core durable goods orders declined 0.3%, short of the estimate of 0.3%. This marked the first decline since May. There was better news from durable goods, which rebounded with a gain of 0.8%, after a plunge of 4.3% a month earlier.
The euro took investors on a roller-coaster ride late last week. The euro took investors on a roller-coaster ride late last week, climbing on Thursday, only to lose these gains on Friday. EUR/USD climbed on Thursday, as the markets responded with a thumbs-down to the Federal Reserve’s rate statement The statement was less dovish than the markets wanted, as policymakers said they would continue to adhere to their policy of gradual increases. Investors were looking for a Christmas gift from the Fed, in the form of a dovish rate statement. There was speculation that the Fed would “compensate” investors for the rate hike, given that the markets have been in turmoil for weeks and the U.S. economy appears to be cooling down.
However, the Fed was not in a giving mood, signaling that it plans to continue raising rates in 2019. Policymakers did not remove the phrase “further gradual increases” from their statement, and Fed Chair Jerome Powell added that the “lower end” of the neutral rate range has been achieved.
Monday (December 24)
- There are no eurozone or U.S. events
*All release times are EST
*Key events are in bold
EUR/USD for Monday, December 24, 2018
EUR/USD for December 24 at 4:35 EST
Open: 1.1371 High: 1.1403 Low: 1.1361 Close: 1.1402
EUR/USD edged higher in the Asian session. The pair lost ground in European trade but has recovered
- 1.1300 is providing support
- 1.1434 is the next resistance line
- Current range: 1.1300 to 1.1434
Further levels in both directions:
- Below: 1.1300, 1.1212 and 1.1120
- Above: 1.1434, 1.1553, 1.1685 and 1.1803
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