EUR/USD Fundamental Analysis, December 25, 2012, Forecast

Analysis and Recommendations:

The EUR/USD is trading at 1.3213 adding a few pips. There was very little action and even less news flow. There was no eco data so markets focus primarily on the US fiscal negotiations and the possibility of the Fiscal Cliff becoming a reality. Many believe it would not be as disastrous as it was first thought. Although President Obama has been hard on the campaign trail gathering votes of a short term solution. With congress on a holiday break, not much is expected to happen over the next few days. European markets closed early today and will be followed by US markets shortly. Many traders will be out of the balance of the week so trading is expected to be light.

Italian PM Monti has confirmed he is available for public office, but the market impact of this is small. There is virtually nothing else to report in today’s trading. Markets are mixed and relatively quiet. Equities are weaker, bond yields are mixed and the USD is weak. The key market focus is the negotiations on the fiscal cliff, which have failed to produce an agreement.

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 24, 2012 actual v. forecast

There were no top tier economic events on Monday as global markets closed early for the Christmas holiday. Japanese markets are closed all day for a regional holiday.

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

Global markets are closed for the Christmas Holiday; many will reopen on Wednesday while some countries are out for additional days. There is no eco data on the calendar for December 25^th. We will not print any fundamental analysis on Christmas day and will return on December 26^th. I would like to wish all of my readers an enjoyable holiday season.

Government Bond Auction

Date Time Country 

Dec 26 01:30 Japan 

Dec 27 10:10 Italy  

Dec 28 10:10 Italy