EUR/USD – Euro gains ground, investors eye U.S jobless claims

EUR/USD has posted gains in the Thursday session, bouncing back from the losses seen on Wednesday. Currently, the pair is trading at 1.1394, up 0.37% on the day. There are only a handful of eurozone events this week, with no data indicators on Thursday. The U.S. releases employment claims, which is expected to rise to 217 thousand. We’ll also get a look at CB Consumer Confidence, which is forecast to climb to 135.7 points. On Friday, Germany releases Preliminary CPI and the U.S. publishes Chicago PMI and Pending Home Sales.

The turmoil in European and the U.S. equity markets has continued this week, but the euro has remained largely unaffected, showing little net movement this week. The catalyst for the volatility in the markets was the Federal Reserve’s rate statement last week, which received a thumbs-down from investors for being more hawkish than expected. Fed policymakers indicated that the current stance of gradual and incremental rate hikes would continue in 2019, although the Fed dot plot lowered the rate forecast from three rate hikes to two rate hikes.

Investor risk appetite has improved, following reports that a U.S. delegation would travel to China to hold trade talks in the first week of January. The ongoing trade dispute between the world’s two largest economies has caused havoc in the equity markets and boosted the U.S dollar against its rivals. President Trump has agreed to suspend further tariffs on China while the sides are talking. A breakthrough might be too tall an order to expect, but the fact that the sides are meeting face-to-face for the first time in months will likely improve the mood of jittery investors.

Plop Plop Fizz Fizz , oh what a relief it is

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Thursday (December 27)

  • 4:00 ECB Economic Bulletin
  • 8:30 US Unemployment Claims. Estimate 217K
  • 9:00 US HPI. Estimate 0.3%
  • 10:00 US CB Consumer Confidence. Estimate 133.7

Friday (December 28)

  • All Day – German Preliminary CPI. Estimate 0.3%
  • 9:45 US Chicago PMI. Estimate 61.4
  • 10:00 US Pending Home Sales. Estimate 0.9%

*All release times are EST

*Key events are in bold

EUR/USD for Thursday, December 27, 2018

EUR/USD for December 27 at 5:45 EST

Open: 1.1353 High: 1.1404 Low: 1.1352 Close: 1.1403

EUR/USD Technical

S1 S2 S1 R1 R2 R3
1.1120 1.1212 1.1300 1.1434 1.1553 1.1685

EUR/USD posted gains in the Asian session and continues to move higher in European trade

  • 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

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Kenny Fisher

Kenny Fisher

Market Analyst at OANDA
A highly experienced financial market analyst with a focus on fundamental and macroeconomic analysis, Kenny Fisher’s daily commentary covers a broad range of markets including forex, equities and commodities. His work has been published in major online financial publications including, Seeking Alpha and FXStreet. Kenny has been a MarketPulse contributor since 2012.