EUR/USD extends consolidation below 1.1100 in pre-Xmas thin conditions
|- US dollar index consolidates US data-led downside.
- EUR/USD supported by weaker Treasury yields amid trade deal concerns
- Volatile moves not to be ruled out amid pre-Xmas thin trading.
EUR/USD is lacking directional bias, as it extends the Asian consolidative mode below 1.1100 into early European trading, with little of relevance on the cards amid X-mas Eve thin market conditions.
Trade deal concerns to dominate light trades?
Amid broad-based US dollar downside consolidation, the EUR/USD pair continues to remain buoyed so far this Tuesday. However, the trading ranges remain tight heading into holiday-thinned markets and amid a lack of fresh fundamental catalysts. All major European markets are closed today in observance of Christmas Eve.
The greenback trades depressed against its main competitors, as the sentiment remains dampened by the US Durable Goods Orders downside surprise. The spot briefly picked up bids following the US data disappointment and headed towards 1.1100, only to face rejection at 1.1096, which continues to cap the upside attempts.
US: Downside surprise in durable goods orders – TDS
Meanwhile, fresh concerns over the US-China trade deal, with the Chinese authorities still not convinced about the US’ intentions on reaching the phase one trade deal, keep the risk tones tepid and weigh on the risk assets such as the US Treasury yields. This likely helps limit the downside in the major. Chinese Diplomat Wang Yi: US should work to get bilateral ties back on track – Global Times
The main currency pair will remain at the mercy of the trade headlines, USD dynamics and sparse trading. However, any volatile moves cannot be off the table due to light trading. The US docket will see the release of the Richmond Fed Manufacturing Index, which is likely to have virtually no impact on the markets.
EUR/USD Technical levels to consider
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.