EURUSD Muted Ahead of US Durable Goods
Fiona Cincotta December 23, 2019 1:00 PM
The dollar moved higher at the end of last week following encouraging data. GDP grew at 2.1% yoy in Q3 as forecast – personal consumption was notably strong. PCE inflation beat expectations as did US consumer confidence.
An absence of relevant EZ data means US dollar dynamic will act as key driver of movement for EUR/USD.
US durable goods orders could produce opportunities later today. Solid growth of 1.5% is forecast during the month. Core durable goods are expected to record just 0.1% growth. The Fed are currently neutral in their stance. For the Fed funds to shift higher, stronger growth in the US economy is needed. Durable goods is an important indicator.
Levels To Watch:
EUR/USD remains capped on the upside by $1.11. The pair trades below the 50 & 100 sma and is supported by 200 sma around $1.1066. A break above $1.11 could revive the uptrend bringing $1.12 into target. A break through $1.1060 could open the door to $1.1040.
Disclaimer: GAIN Capital UK Limited (trading as "Forex.com") is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, Forex.com does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.
No opinion given in this material constitutes a recommendation by Forex.com or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although Forex.com is not specifically prevented from dealing before providing this material, Forex.com does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.
For further details see our full non-independent research disclaimer and quarterly summary.