EUR/USD Fundamental Analysis January 1, 2013, Forecast

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Updated: Aug 21, 2015, 02:00 UTC

Analysis and Recommendations: The EUR/USD continues to fall trading at 1.3176 as traders sold off the euro to book profits while the euro was above the

EUR/USD Fundamental Analysis January 1, 2013, Forecast

Analysis and Recommendations:

The EUR/USD continues to fall trading at 1.3176 as traders sold off the euro to book profits while the euro was above the 1.32 level and also as traders returned to the safety of the US dollar. The forex market seems to have almost taken into account the U.S. fiscal cliff discussions will go into the New Year and investors seem to have taken off any risk-on positions before the holiday period.”

The safety of the dollar is favored in times of financial uncertainty and deadlock in budget talks is likely to keep it firm against most major currencies. Any progress in talks would, however, be positive for stocks and riskier currencies such as the euro and Australian dollar.

The euro has gained 2 percent against the dollar this year. Sentiment towards the eurozone improved after the European Central Bank pledged to buy bonds of indebted peripheral countries to reduce their borrowing costs. Positioning data released on Friday showed speculators sharply reduced bets against the euro in the week ending Dec. 24.

There is little in the way of eco data due today and market focus will remain the US fiscal cliff.

Our fundamental analysis will not be published tomorrow, as we celebrated the New Year’s holiday and global markets are shuttered. I would like to take this time to wish all of my readers and followers the best in the New Year… Here’s to profitable trading.

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 31, 2012 actual v. forecast

Date

Time

Currency

Importance

Event

Actual

Forecast

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Dec. 31