© Dukascopy Bank SA
Last week, the most popular pair on the foreign exchange market managed to recover some losses it accumulated during a number of weeks before. Starting a new trading week on Monday at the level of 1.2259, the single European currency began strengthening in value to achieve the 1.2489 level on Thursday. The Euro gained ground against the Dollar on Friday of last week, closing the period at 1.2462, but gains were led by a strong report on US consumer sentiment, which soared to 93.8 points, almost reaching the eight-year high amid improved prospects for labor market and lower gasoline prices. US retail sales advanced 0.7% in November, while initial claims for US unemployment benefits fell by 3,000 to seasonally adjusted 294,000. However, oil hit its lowest price in five years, since OPEC decreased its demand forecast for 2015 to the lowest level in 12 years. Meanwhile, the second round of the ECB's TLTRO fell short of expectations, as the regulator managed to lend 129.84 billion euros. Nevertheless, falling oil prices and worries due to upcoming Greek presidential election continued to fuel risk aversion.
In a week time, the sentiment on this currency pair changed only marginally to the downside, as now 68% of traders predict the Euro to decline, while last week the idea was supported by as many as 63% of Dukascopy Community members. Among important news this week, the German's ZEW survey is due to release data on economic sentiment in the country. Besides that, the Eurozone's inflation as well as US Core CPI will be announced on Wednesday, which are likely to remain without major surprises. Concerning more news from American side, traders could pay attention to the Fed's interest rate decision and subsequent monetary policy statement in the middle of the new week.
© Dukascopy Bank SA