The euro has consolidated above 1.1300

On Wednesday, December 8, trading in the euro / dollar pair ended with an increase. The euro rose in price against the US currency by 0.67%, to 1.1343. The growth of the pair began with the opening of the Asian session and accelerated in the American session.

The euro has benefited from a sharp jump in the euro / pound rate triggered by reports of new COVID-19 restrictions in the UK. This was reported by the Financial Times.

Risk appetite was supported by easing fears about the potential economic impact of the new variant of the Omicron coronavirus. Buyers got an extra boost after Pfizer said a third dose of their COVID-19 vaccine neutralized the Omicron variant in laboratory tests. Supported by the cross, the price rallied to 1.1355.

Scheduled statistics (GMT +2):

At 09:00 am in Germany will be released the trade balance for October.
At 15:30 the US is to publish data on initial jobless claims for December.
At 21:00, Bank of Canada representative Gravel will deliver a speech.

Current situation:

The focus of traders' attention is shifting to the publication of data on consumer inflation in the US (Friday), which will influence the Fed's decision to cut stimulus more quickly and pave the way for raising interest rates. The calendar is empty for today.

Technical analysis:

In Asia, the major currencies are showing mixed performance. The Australian, New Zealander, pound and yen are trading in positive territory. The euro is under pressure as the crosses are correcting after yesterday's rally.

The price retraced 23.6% of the gain from 1.1288 to 1.1355. The demand for risky assets remains. The key resistance for buyers is the 1.1383-1.1387 zone. Until Friday, nothing prevents buyers from walking to the resistance and waiting there for the US inflation report for November.

Summary:

on Wednesday, the euro rose in price against the background of increased demand for risky assets and a jump in the euro / pound pair after the announcement of new restrictive measures from COVID-19 in the UK. The focus of traders' attention is shifting to the publication of data on consumer inflation in the United States. The demand for risky assets remains. The target zone for buyers is the levels 1.1383-1.1387.