The single currency kept its lateral movement after the growth
On Wednesday, December 29, at the end of the day, the euro closed with an increase of 0.33%, at 1.1345. The rise in US Treasury yields strengthened the dollar and put some pressure on the euro. Before the rise, the euro / dollar pair dropped to 1.1274, the gold rate - to 1789.49. The yield on 10-year government bonds rose to 1.56%.
The news about the developer China Evergrande Group could have a negative impact on risky assets. The company missed the coupon payment on its $ 255 million dollar bonds. The holding had to pay $ 50.4 million on bonds maturing in 2023 and $ 204.8 million on bonds maturing in 2025. Both issues have a 30-day grace period until the default is announced.
The euro / dollar pair recovered intraday losses from a weekly low and bounced back to a fresh daily high of 1.1369. All major currencies bounced, including gold. There was no news behind the growth. Sharp price fluctuations took place in a limited range before the new year.
Scheduled statistics (GMT +3):
At 10:00 am UK is to publish Nationwide House Price Index for December.
At 11:00 Switzerland will release the Kof Leading Indicators Index for December.
At 16:30 the US is to release a report on the number of initial jobless claims on December 17-24.
At 17:45 the US is to publish the Chicago PMI for December.
At the time of this writing, the euro is worth 1.1316. Major currencies are trading in the red against the US dollar. The largest losses are incurred by the euro (0.27%) and the franc (0.29%). The market continues to fever on the back of low volumes ahead of the holidays and an empty calendar.
With 2022 approaching, investors are gearing up for a year of high inflation, uncertainty over the coronavirus, and tightening of monetary policy by the US Federal Reserve.
The price remains trading in the monthly range of 1.1225-1.1385. Until the new year, the price is unlikely to get out of it. Investors and traders will return to the market after the January 3rd Holidays.
Summary: on Wednesday, trading in the euro closed higher. There was no news behind the recovery of the euro / dollar pair. From the reached maximum of 1.1369, the price returned to the level of 1.1318. The price remains trading in the monthly range of 1.1225-1.1385. Until the new year, she is unlikely to come out of it.