Community Forecasts December 14-18: EUR/USD 1W Chart

Source: Dukascopy Bank SA
© Dukascopy Bank SA
Last week, the most popular pair on the foreign exchange market experienced a stable advance. However, the bearish trend resumed on Monday and the Greenback was accelerating higher, gaining against all the major peers. The lack of market movers on the European calendar on Tuesday shifts the traders' attention towards external factors, such as diverging monetary policies between the world's two largest economies. Meanwhile, the next day, the shared European currency extended its previous gains and hit an intraday high, driven mostly by market sentiment, while German trade figures had a minor effect on the EUR/USD. Germany's trade surplus shrank in October, but was still higher than expected. Both exports and imports declined more than expected, exports fell 1.2%, down from a 2.6% rise in the previous month, more than the 0.6% fall that had been expected. Imports, in turn, also fell, 3.4% compared to a revised rise of 3.8% seen in the previous month. Eventually, the Dollar weakened on Friday as tumbling oil prices dragged the wider markets lower, and dimmed expectations for rapid rate hikes by the Federal Reserve in the coming year. 
In a week time, the sentiment on this currency pair divided almost equally. Among important news this week, on Wednesday, the Euro zone is to release survey data on manufacturing and service sector activity, while Germany and France are going to present individual reports. Concerning more news from American side, traders could pay attention to the data on building permits, housing starts and industrial production in the same day.

© Dukascopy Bank SA
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