Volatility Eases Ahead Of Christmas
On Tuesday, December 21, at the end of the day, the euro closed with an increase of 0.07%. Trading ended at 1.1286. At the beginning of the European session, the price climbed to 1.1303. Buyers' activity was observed against the background of the growth of Asian and European stock indices. They did not work with the growth, as the sale of the euro in the euro / pound pair followed. As a result, the euro / dollar pair fell before the American session, while the pound / dollar rose. Also, the strengthening of the euro was restrained by the falling 10-year bonds.
Scheduled statistics (GMT +3):
At 16:30 in Canada will be released the housing price index on the primary market for November.
At 16:30 the US is to publish the final estimate of Q3 GDP.
The quarterly report of the SNB will be released at 17:00.
At 18:00, the US is to publish CB's consumer confidence index for December, as well as home sales in the secondary market for November.
At 18:30, the US Department of Energy will present the stocks of crude oil for the past week until December 17.
At the time of writing this review, major currencies are trading in the red. The largest losses are incurred by the Australian (-0.32%) and the New Zealander (-0.27%). Pacific currencies are correcting after yesterday's gains. Investors remain concerned about the potential economic impact of the rapid spread of the Omicron variant of the coronavirus.
The economic calendar is meager this week. Market participants go to the cash for the Christmas holidays. US index futures are trading at Tuesday's close. There is an opinion that they will continue to recover if negative news about Omicron is not published.
The EUR / USD pair is trading near the balance line (sma55). The price found support around 1.1264. The external background for the single currency is relatively calm. An ambiguous situation is observed in the EUR / GBP cross-pair. If the cross begins to recover from yesterday's growth, the single currency will receive support from the dollar.
Sideways movement in the range of 1.1257-1.1290 may drag on until the American session. The faster the price recovers to 1.1290, the higher the likelihood of continued growth to 1.1330. If the euro is under pressure from the crosses, then against the background of the general strengthening of the dollar, it is expected to fall to 1.1234.
Summary: on Tuesday, the single currency strengthened against the US dollar. Market volatility is declining as traders and investors go into cash for the Christmas holidays. The external background for the single currency is relatively calm. Sideways movement in the range of 1.1257-1.1290 may drag on until the American session.