The Euro is heading towards the highs. Overview for 16.12.2020

EURUSD is speeding up and getting ready to update its short-term highs.

The major currency pair is in the catbird seat again and ready to “gallop” towards new highs. The current quote for the instrument is 1.2170.

Market players once again believe in risks and are waiting for an effective COVID-19 vaccine to appear soon. They are in a hopeful mood and can’t see any problems in the German lockdown. 

The statistics published by the USA yesterday showed that the Industrial Production added 0.4% m/m in November after expanding by 0.9% m/m the month before. At the same time, the Capacity Utilization Rate was 73.3%, which is a bit better than expected, after being 73.0% in the previous month.

Later in the evening, investors may switch their attention to the Retail Sales, the Manufacturing PMI, and the Services PMI in the USA. However, the icing on the cake will be a December meeting of the US Federal Reserve with Jerome Powell in charge. Market players should pay special attention to Powell’s comments about the state of the US economy and the financial outlook for the future.