EUR/USD attempted to recover on the past week, bringing many analysts to the idea of a “double bottom” formation at 1.2350. However, the price failed to fix above the 1.2500 mark and holds below the key trend resistance line. We maintain a bearish view, targeting 1.2360 and lower.
Euro remains pressured by the expectations of the full-scale ECB quantitative easing. Low energy prices increase disinflationary expectations. Next meeting is scheduled for the coming Thursday, December 4.
However, there is a high chance that the ECB officials will wait until the second round of the TLTRO program to come on December 11. Low demand for the cheap ECB loans would be a strong argument for launching aggressive stimulus in early 2015.
On the new week you should also pay attention to the November PMI indices on Monday and on Wednesday. What’s more, October retail sales data will also be released on Wednesday.
Euro remains pressured by the expectations of the full-scale ECB quantitative easing. Low energy prices increase disinflationary expectations. Next meeting is scheduled for the coming Thursday, December 4.
However, there is a high chance that the ECB officials will wait until the second round of the TLTRO program to come on December 11. Low demand for the cheap ECB loans would be a strong argument for launching aggressive stimulus in early 2015.
On the new week you should also pay attention to the November PMI indices on Monday and on Wednesday. What’s more, October retail sales data will also be released on Wednesday.
Recommended Content
Editors’ Picks
EUR/USD clings to daily gains above 1.0650
EUR/USD gained traction and turned positive on the day above 1.0650. The improvement seen in risk mood following the earlier flight to safety weighs on the US Dollar ahead of the weekend and helps the pair push higher.
GBP/USD recovers toward 1.2450 after UK Retail Sales data
GBP/USD reversed its direction and advanced to the 1.2450 area after touching a fresh multi-month low below 1.2400 in the Asian session. The positive shift seen in risk mood on easing fears over a deepening Iran-Israel conflict supports the pair.
Gold holds steady at around $2,380 following earlier spike
Gold stabilized near $2,380 after spiking above $2,400 with the immediate reaction to reports of Israel striking Iran. Meanwhile, the pullback seen in the US Treasury bond yields helps XAU/USD hold its ground.
Bitcoin Weekly Forecast: BTC post-halving rally could be partially priced in Premium
Bitcoin price shows no signs of directional bias while it holds above $60,000. The fourth BTC halving is partially priced in, according to Deutsche Bank’s research.
Week ahead – US GDP and BoJ decision on top of next week’s agenda
US GDP, core PCE and PMIs the next tests for the Dollar. Investors await BoJ for guidance about next rate hike. EU and UK PMIs, as well as Australian CPIs also on tap.