The Euro reached this month’s highs. Overview for 29.12.2017

The main currency pair continues getting more expensive at the end of December; investors have doubts about American economic outlooks.

The EUR/USD pair continues growing on Friday. The current quote for the instrument is 1.1960.

There is little news between two holidays, Catholic Christmas and New Year, so there is almost nothing that can support the low-liquid market. That’s why, investors are modifying their positions in the main currency pair based on the facts they already have. For example, the US taxation system reform: earlier, the USD was bought on expectations, but later investors started selling it on facts.

The current movements do not provide much information. On the one hand, it’s the end of the year, there aren’t many statistical reports and investors have to deal with what they have. On the other hand, the US taxation system reform itself is very positive for the USA in the long-term. That’s why we may assume that current fluctuations are temporary and mostly emotional.

There is hardly any statistics before the last weekend of the year. Spain reported on the Inflation Rate Flash, which turned out to be weaker than expected: the indicator decreased from 1.7% y/y in the previous month to 1.2% y/y in December. The expected reading was 1.5% y/y. In the afternoon, Germany will report on the CPI, which is expected to reach 0.5% m/m.

Next Monday, most countries will have a day off due to the New Year celebrations, but the US and European investors are expected to return to the market on Tuesday.

RoboForex Analytical Department