Event to watch out for today:
15:30 EET. USD – Unemployment Claims Number
EURUSD:
EUR/USD traded in negative territory for the third consecutive day around 1.0310 in the early European session on Thursday. Downbeat German factory orders data for November and expectations of aggressive rate cuts by the European Central Bank (ECB) this year are weighing on the euro (EUR) against the US dollar. Later on Thursday, Eurozone retail sales for November as well as the Fed’s peak will be in focus.
Factory orders in Germany unexpectedly declined in November, with the figure falling 5.4% for the month compared to a 1.5% decline in the previous quarter, the German Federal Statistical Office said on Wednesday. The figure was weaker than the 0% drop expected. Weaker-than-expected economic data from Germany, the bloc’s largest economy, put pressure on the common currency.
According to the minutes of the December 17-18 Fed meeting, U.S. Federal Reserve (Fed) officials noted the need for a cautious approach in the coming quarter, adding that President-elect Donald Trump’s trade policies could make inflation data harder to read. The hawkish tones of the US central bank officials could lift the US Dollar and create a headwind for the pair in the near term.
Trading recommendation: Watch the level of 1.0300, if consolidated below consider Sell positions, if rebounded consider Buy positions.
Origin: FreshForex
