EUR/USD Fundamental Analysis December 27, 2012 Forecast

Analysis and Recommendations:

The EUR/USD climbed as market moods changed to a more positive tone. The euro gained 50pips after falling in earlier trading. The pair is trading at 1.3242. After a day off due to the Christmas holiday, currency markets resumed trading on Wednesday although amid thin liquidity as European markets remain closed for Boxing Day. Against this backdrop, the euro managed to move slightly higher versus the dollar and briefly climbed above the 1.3200 mark to hit a high of 1.3252. However, EUR/USD quickly lost momentum and retreated to the 1.324 zone. 

The eurozone financial crisis seems to have settled since Greece’s bailout was restructured and accepted by the region’s lawmakers. However, the current political trouble in Italy and uncertainty in Spain have remained to remind investors that the region is far from being in the clear.

In Italy, Prime Minister Mario Monti suddenly and unexpectedly resigned after his budget for 2013 passed. Monti was well respected by his European peers and his austerity measures, though poorly received by the Greek people, were praised by other more conservative governments like Germany and Finland.

There was not much else driving markets except the shift in sentiment as President Obama noted that lawmakers would resume negotiations tomorrow. Traders feel that a deal could be struck in the next two days to avoid the fiscal disasters awaiting the US.

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 26, 2012 actual v. forecast

Markets were closed on Christmas day and there were no economic releases or major data reports.

 

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

Government Bond Auction

Date Time Country 

Dec 27 10:10 Italy  

Dec 28 10:10 Italy