The EURUSD pair traded slightly higher on Thursday, December 23, with the pair gaining 0.18% to 1.2183. The euro slipped to 1.2160, but rebounded swiftly, retracing to the intraday high at 1.2221 (+99 pips). The spike higher was attributable to a rally in sterling, which strengthened by 168 pips against the dollar to 1.3570. This weakened the US currency and paved the way for gains in other major currencies.
Great Britain reportedly made several "big concessions" in its trade talks with the EU. The EU and the UK are on the cusp of a trade deal and may sign off on it today. British Prime Minister Boris Johnson is expected to make an official speech during the European session. The EU member states will need to agree to provisional application of the deal on January 1 since there is not enough time for its ratification by the European Parliament.
All eyes were so riveted on Brexit that Trump’s veto of the defense spending bill nearly went unnoticed. Furthermore, US market participants are waiting for a decision on the “disgraceful” coronavirus relief package that Trump sent back to Congress for redrafting.
Today’s macro agenda (GMT+3)
At the time of writing, the euro was trading at 1.2206. On December 24, US markets will be running on an abbreviated pre-Christmas schedule. Brexit still takes front and center stage for the FX market as traders await official announcements on the trade deal.
The press conference undoubtedly hype up a ‘great victory’ scored by both sides after months of haggling to propel the trade deal to the finish line. Then a due diligence commission will most likely be formed to check the legal aspects of the agreement and ensure that the interests of both parties are upheld.
Today’s economic calendar is blank. The price action is hovering near the balance line near the midpoint of the 1.2175-1.2245 range. Bottom line: breaking Brexit news will call the shots for EURUSD during the European trading session.
The dollar traded mixed against it peers in a narrow range yesterday and ahead of the pivotal FOMC rate decision later today. Investors have appeared a little more confident after the sharp selloff in risky assets early on Monday morning.
22 March 11:52
The European Central Bank is set to announce its rate decision at 13:15 GMT today (Thursday, March 16th). In short, EURUSD is perhaps likelier to react to market sentiment, rather than the fundamental actions of the ECB today.
16 March 11:14
More tightening would be good for the dollar which has struggled with the banking contagion issues.
15 March 10:53
All eyes were on Fed Chair Powell and his semi-annual testimony to the Senate Banking Committee on Tuesday. And he grabbed the headlines big time as he chose to go large on his inflation-fighting credibility.
8 March 12:26
Get ready for a rollercoaster ride across global FX markets this week! The calendar in focus for investors and traders is packed with central bank meetings and rate decisions, a semi-annual Congress appearance from the most powerful banker in the world, and the latest US jobs report.
6 March 10:42
There's a better website for you
A new exciting website with services that better suit your location has recently launched!
Sign up here to collect your 30% Welcome Bonus.