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Old 18-12-2020, 16:35
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KostiaFM KostiaFM is offline
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Default Re: Daily Market Analysis by ForexMart

EUR/USD. December 18, 2020 – Euro continues the «northern campaign»

The continuing weakening of the US dollar and rising stock indices continue to provide strong support for the EUR/USD pair. The current quote for the pair is 1.2270. However, the higher the quotes rise, the more painful it will fall, especially since the main factors supporting the euro (successful Brexit and fiscal stimulus) may not be implemented.

It became known yesterday that negotiations between the EU and the UK are again at a deadlock, and the issue of fishing is again not the only controversial point. Not all is well in the US Senate either: the parties cannot come to a final agreement on the scope of the incentive program.

And even if the other day Congress approves the aid package, which, together with the vaccination of the population, can become a strong driver of US GDP growth, investors may recall the «dollar smile theory». If the United States soon begins to show a better economic recovery than other countries, the greenback will inevitably go up the hill.

The economic calendar is practically empty today. Only the data on the IFO business climate index in Germany will be of interest: the indicator came out better than forecast (92.1 against 90.9 points), which also supported the European currency today.
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