EUR/USD Fundamental Analysis December 21, 2012, Forecast

Analysis and Recommendations:

The EUR/USD is trading at 1.3245 adding 18pips. The euro is stronger, having gained 0.2% since yesterday’s close. Wednesday’s trading pattern was interesting as euro rallied above 1.33 to a new 8-month high, but failed to sustain the move and closed flat to Tuesday, suggesting the bulls easily lost control to the bears, the bulls are once again controlling the euro; today’s close will be important as a second failure to sustain gains would be concerning to bears. Fundamental data has been limited, with most of the focus on the US fiscal cliff. News that Germany will auction just €255bn in 2013, down from 2012 and the smallest amount in 5-years has grabbed headlines and halted rising German yields. The Libor scandal continues to attract headlines but has so far failed to generate a currency response.

The euro gained against the dollar on today in thin trading as higher-than-expected U.S. economic growth data for the third quarter bolstered the market’s appetite for risk-taking.

But it was the U.S. gross domestic product report which took center stage in the currency market. Investors bought more euros as recovery in the world’s largest economy seemed to be on track. Currencies linked to global growth such as the euro and Australian dollar tend to benefit when there’s increased risk appetite.

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 20, 2012 actual v. forecast

 

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

Government Bond Auction

Date Time Country 

Dec 21 16:30 Italy  

Dec 26 01:30 Japan 

Dec 27 10:10 Italy  

Dec 28 10:10 Italy