By the end of yesterday’s trading session the pair EUR/USD managed to regain growing by nearly 300 points, up to the level of 1.0765. European stocks indices have also grown. The rise in the pair EUR/USD was not prevented even by the strong US data received during yesterday's American trading session. It became known that ISM PMI in the US service sector has grown to 57.2 against the forecast of 55.3 and the level of 54.8 a month ago. On Monday the USD fell against major currencies due to pressure from the growing Euro. At the same time the yield of US Treasury bonds did not grow. It seems that investors have incorporated interest rate hike in December inti prices. According to CME, probability of the rate hike is 92.7%. Probability of the rate hike in March has grown up to 20% from 15.3% a day earlier.

Today’s news will include European GDP for Q3 at 13:00 (GMT+3. Volatility in the Euro and European indices at this time will increase.

As soon as the markets calm down after the Italian referendum, held last Sunday, market participants will switch their attention to the ECB meeting, which will take place on Thursday. It is expected, the Central Bank will announce that the bond purchase program, which is due to end in March 2017, will be extended. Interest rate decision of the ECB will be published at 15:45 (GMT+3). At 16:30 press conference of the ECB will start and the head of the ECB, Mario Draghi will give a speech. It is expected that volatility in all financial markets will go up.

Political situation and weak economic recovery in Eurozone will continue to affect the Euro in the medium term. Elections are scheduled in 2017 in France, Germany and Netherlands. Which means that Eurozone will faces a surge of populism that threatens to change the structure of Eurozone. This is a negative factor for the Euro. Apparently, the Euro will continue to seek parity with the USD in the pair EUR/USD in the medium term.EUR/USD: Will Euro manage to regain? Fundamental analysis for 06/12/2016

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