© Dukascopy Bank SA
In course of the previous trading week ended December 25, the pair was more stable than during several weeks before. By beginning the week on Monday, the Euro turned into negative territory on political concerns arising from Spain, after the ruling People's Party failed to secure a majority after Sunday's election. However, the next day, the Euro strengthened mostly due to the weak Dollar, since the Economic output in the world's number one economy declined from 2.1% to 2.0%, according to the third estimate of GDP for the third quarter. The GDP price index remained at 1.3% and the PCE index stayed at 3.0%. Meanwhile, at the end of the week, the Greenback failed to move, pushing Euro up, after the latest batch of US macro, thus the pair closed the week around weekly highs.
As the Christmas holiday looms, markets are losing liquidity, as most high volume market participants are taking days off for Christmas and New Year's celebrations
This week, Dukascopy traders became more bearish on the European currency's perspectives, despite almost 48% of all votes are set to go long. Despite that, the market is waiting for US consumer confidence, which is expected to be released on Tuesday. Moreover, traders are waiting for report on Pending Home Sales and Initial Jobless Claims the next day. Additionally from the European side, on Thursday is placed ECB Monetary Policy Meeting Account.
© Dukascopy Bank SA