EUR/USD Fundamental Analysis December 14, 2012, Forecast

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Updated: Aug 21, 2015, 00:00 UTC

Analysis and Recommendations: The EUR/USD remains elevated to trade at 1.3083 after the huge injection of stimulus from the FOMC weakened the US dollar.

EUR/USD Fundamental Analysis December 14, 2012, Forecast

Analysis and Recommendations:

The EUR/USD remains elevated to trade at 1.3083 after the huge injection of stimulus from the FOMC weakened the US dollar. The euro still has trouble breaking above the 1.31 price level. Data released in the US today showed another drop in unemployment claims as well as retail sales beating forecast helped support the US dollar and limited gains for the euro.

The euro and pound lost ground against the dollar as the initial euphoria of the Federal Reserve’s decision to expand its balance sheet faded and U.S. budgetary concerns resurfaced.

The euro retreated after trying and failing to push past $1.31 for a second successive day, slipping to as low as $1.304 before steadying. Other risk-sensitive currencies such as the pound also fell against the dollar as European shares turned south and attention returned to the U.S. “fiscal cliff” talks. If U.S. policy makers fail to reach a resolution by the end of the year it could result in automatic tax rises and spending cuts, hurting business just as the world’s largest economy begins to show fresh evidence of renewed momentum.

FxEmpire provides in-depth analysis for each currency and commodity we review. Fundamental analysis is provided in three components. We provide a detailed monthly analysis and forecast at the beginning of each month. Then we provide more up to the data analysis and information in our weekly reports

Economic Data December 13, 2012 actual v. forecast

Date

Currency

Event

Actual

Forecast

Previous

Dec. 13

KRW

South Korean Interest Rate Decision

2.75%

2.75%

CHF

PPI (MoM)

0.0%

-0.3%

-0.1%

CHF

Interest Rate Decision

0.00%

0.00%

GBP

CBI Industrial Trends Orders

-12

-16

-21

USD

Core PPI (MoM)

0.1%

0.2%

-0.2%

USD

Core Retail Sales (MoM)

0.0%

-0.1%

0.0%

USD

PPI (MoM)

-0.8%

-0.5%

-0.2%

USD

Retail Sales (MoM)

0.3%

0.5%

-0.3%

USD

Initial Jobless Claims

343K

370K

372K

USD

Continuing Jobless Claims

3198K

3210K

3221K

USD

PPI (YoY)

1.5%

1.8%

2.3%

USD

Core PPI (YoY)

2.2%

2.2%

2.1%

Upcoming Economic Events that affect the CHF, EUR, GBP and USD

Date	Time	Currency	Event	Forecast	Previous
Dec. 14	07:58	EUR	French Manufacturing PMI	45.0	44.5
	08:28	EUR	German Manufacturing PMI	47.2	46.8
	10:00	EUR	CPI (YoY)	2.2%	2.2%
	10:00	EUR	Core CPI (YoY)		1.5%