On Monday, December 21, trading in the euro ended with growth. The euro rose in price against the dollar by 0.36%, to 1.1278. The single currency received support from the EUR / GBP gain following the declaration of a state of emergency in London due to a sharp increase in the number of cases of infection with the omicron strain of coronavirus. In the American session, growth accelerated to 1.1304 amid a general recovery in US stock indices and a weakening dollar.
Scheduled statistics (GMT +3):
- At 14:00, the UK is to publish CBI closed sales data for December.
- At 16:30, in Canada will be released the retail sales index for October.
- At 16:30, the US will present its current account balance for Q3.
- At 18:00, eurozone will publish consumer confidence index for December
- At 18:30, Australia Leading Indicators Index will be released October
Current situation:
The major currencies are showing mixed performance on Tuesday. In the morning, there has been an increased demand for risky assets. The yen and the franc are in the red. More like a correction, as investors remain concerned about a weakening economic recovery. The gold price declined but remained firm as many traders view the yellow metal as a defensive asset against inflation. And it is not expected to decrease in the 1st quarter of 2022.
British Prime Minister Boris Johnson on Monday said he would tighten the coronavirus-related Christmas restrictions if necessary.
Technical analysis:
The EUR/USD pair recovered to 1.1303. The price growth stopped at the balance line (SMA55). The euro was getting support from the rise in cross-pairs with the euro amid the weakening of the British pound.
The negative news was enough to send the euro towards 1.10. Constant bounces upward from 1.1220 also cause tension for sellers. The price is in the range of 1.1220-1.1385 twenty calendar days. By the New Year, they should get out of it against the background of a decrease in volumes before the New Year. I expect the pair to decline to 1.1250-1.1260 with a subsequent rise to the 1.1315 area.
Summary: the week for the euro began with a positive note. The euro has risen in price against the dollar and the British amid the introduction of an emergency in London due to a sharp increase in the number of cases of infection with the omicron strain of coronavirus. After the rebound, buyers are trying to gain a foothold around 1.1300. Investors remain concerned about the weakening economic recovery due to Omicron. A new wave of purchases is expected from the 1.1250-1.1260 zone, followed by growth to the 1.1315 area.