EUR/USD Weekly Fundamental Analysis December 9-13, 2013 Forecast

Weekly Analysis and Recommendation:

The EUR/USD ended the week at 1.3670 after hitting a high at 1.3694 after data showed that the US economy is booming much above expectations. US GDP climbed to 3.6% while unemployment claims tumbled. On Friday the nonfarm payroll showed that the US added more jobs than expected and unemployment tumbled to 7% against forecast of 7.2%. The dollar advanced earlier after the Department of Labor said the U.S. economy added 203,000 jobs in November, beating expectations for a 180,000 increase and up from a downwardly revised 200,000 rise the previous month. 

Also on Friday, the preliminary Thomson Reuters/University of Michigan consumer sentiment index increased to 82.5 in December from 75.1 the previous month, far surpassing expectations for a 76.0 reading. 
The data kept expectations firmly in place that the Federal Reserve will begin scaling back its USD85 billion in monthly bond purchases, which weaken the dollar to spur recovery, however. Profit taking sent the greenback falling, as a strong jobs report was already priced into trading prior to Friday.

The euro and other higher-yielding currencies continued to see support on the European Central Bank’s decision this week to forgo implementing negative interest rates, which many investors were expecting.

 It was a sense of relief that rallied the euro this past week. Fear that the ECB was building on an aggressive easing policy had bulls on edge and worked in a discount for the currency. After it became clear at this most recent meeting that November’s surprise rate cut would not be immediately followed by a new stimulus program, the shared currency responded with a ‘relief rally’. Yet, such moves in their very nature are limited in scope.

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 recent analysis and information in our weekly reports and we provide daily updates and outlooks.

Historical: From 2011 to Present

Highest: 1.4577USD on Jul 03, 2011

Average: 1.3165USD over this period.

Lowest: 1.2041 USD on Jul 24, 2012

Major Economic Events for the week of December 2-6 actual v. forecast for Euro, GPB, the Franc, and USD

 

Economic Highlights of the coming week that affect the Euro, GBP, CHF and the USD

Government Bond Auction

Date Time Country 

Dec 09 10:00 Slovakia

Dec 09 16:30 Italy

Dec 10 09:30 Spain

Dec 10 10:10 Norway

Dec 10 10:15 Austria

Dec 10 10:30 UK

Dec 10 18:00 US

Dec 11 09:30 Swiss

Dec 11 10:03 Sweden

Dec 11 10:10 Italy

Dec 11 10:30 Germany

Dec 11 18:00 US

Dec 12 10:30 UK

Dec 12 16:00 US

Dec 12 18:00 US

Dec 13 11:00 Belgium

Dec 13 15:30 UK