© Dukascopy Bank SA
The Euro started the previous week at the 1.2420 level against the Greenback and lost almost 200 pips over five trading days, closing the week at 1.2226. Meanwhile, more than 68% of traders expected such a development to take place. The Euro remained under broad pressure on Monday, as growing concerns over potential political instability in Greece continued to dampen demand for the single currency. The Euro pushed higher against the US Dollar on Tuesday, after data showed that German economic sentiment improved for a second successive month in December, easing concerns over a slowdown in the Euro zone's largest economy. Germans PMI, in turn, advanced to 51.2 points from 49.5 in November. Moreover, index of German economic sentiment jumped to 34.9 points from 11.5 a month ago. It was the highest reading since May 2014. Nevertheless, the Dollar soared on Thursday after the Fed announced that it expects to start raising interest rates the next year, despite the previous pledge to keep them low for a considerable period of time. As a result, the Euro fell to the new 2014 low on Friday, as demand for the Greenback remained broadly supported by expectations for a US rate hike in 2015.
This week the overall sentiment on the EUR/USD is little changed, compared to previous week. The same number, namely 69% of Dukascopy Community members, is waiting for the Euro to drop further. The average prediction for December 30, in turn, is located around the 1.232 level. Among important events in the Eurozone this week, consumer confidence, which was released on Monday, reached the 10.9 points level. US durable goods orders will be published on Tuesday, as well as the Q4 Final GDP the same day. On Wednesday, traders could pay attention to the initial jobless claims
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