Euro consolidates around 1.1350
On Wednesday, December 22, trading in the euro / dollar pair closed with growth. The euro rose in price against the dollar by 0.36%, to 1.1327. The high of the day was recorded at 1.1342. The strengthening of the euro began with the opening of the European session and intensified in the American one. The growth of the euro / dollar pair was held back by the euro / pound cross.
In the American session, the ruble's positions were supported by a general weakening of the dollar, an increase in stock indices in Europe and the United States, as well as a decrease in the yield of 10-year US government bonds.
The demand for risky assets rose on the news about Omicron. According to the latest research and preliminary data from South Africa and the Universities of Edinburgh and Strathclyde, the new strain is less likely to bring patients to the hospital than the Delta strain. The FDA has approved Pfizer's COVID-19 remedy for home treatment. Statistics in the United States faded into the background for a while.
The US consumer confidence index continued to rise in December. US home sales rose in November (growth continues for the third month in a row). US GDP in the third quarter grew by 2.3% on an annualized basis, which is higher than the preliminary estimate of 2.1%.
Scheduled statistics (GMT +3):
GDP for November will be released in Canada at 16:30.
At 16:30, the US is to publish data on personal consumption spending - core price index for November. Durable Goods Orders for November. Personal income / expenses for November, initial jobless claims for December.
At 18:00 in the US there will be a report with data on home sales in the primary market for November, as well as the consumer confidence index from the University of Michigan for December.
At 18:00, the US is to publish inflation expectations from the University of Michigan for December.
As of this writing, the major currencies are showing mixed performance. The Japanese yen and Swiss franc traded in the red, indicating continued demand for risky assets.
At the American session, a block of statistics in the US will be released, which may have an impact on the foreign exchange market before the long weekend. On Friday, the foreign exchange market works on a shorter schedule. From the data, it is worth highlighting the price index of expenses and orders for durable goods for November.
The growth of the euro / dollar pair stopped at the 90th degree (1.1340). The price is consolidating at 1.1337. A slight correction is expected in the first half of the day. In the American session, I expect a renewal of the weekly high at 1.1350. The market is thin, so there can be unpredictable price fluctuations in either direction. Support is the level of 1.1305.
Summary: the euro closed with growth on Wednesday amid increased demand for risky assets. The demand for them increased on the positive reports of the new Omicron strain. The external background is positive before the Christmas holidays. After a correction to 1.1320, a weekly high is expected to renew at 1.1350.