EURUSD Fundamental Outlook


The Commerce Department will report on new home sales on Friday. New home sales are projected to fall 4.7% in November.  Meanwhile, dig into the 22 December EURUSD Fundamental Outlook.

22 December, OctaFX – A deluge of economic data will make headlines on Friday, giving investors a final taste of the global economy ahead of the Christmas long weekend.

Market outlook

Action begins at 07:00 GMT with a report on German consumer confidence courtesy of GfK. The monthly indicator is expected to show a reading of 10.8 for January. The French government will report on producer inflation, consumer spending and third quarter GDP at 07:45 GMT. France’s economy likely expanded 0.5% in the quarter, according to a median estimate of analysts.

Shifting gears to North America, the US Department of Labor will report on personal income and outlays at 13:30 GMT. Personal income from all sources is projected to grow 0.4% month-on-month. Personal spending is projected to grow 0.5%. The core personal consumption expenditure (PCE) index – the Federal Reserve’s preferred measure of inflation – is projected to rise 1.5% annually. That’s well below the central bank’s 2% target.

A report on durable goods orders will also make headlines at 13:30 GMT. Orders for manufactured goods meant to last three years or more is forecast to rise 2% in November after falling 0.8% the month before. Excluding transportation, durable goods orders likely rose 0.5%, according to analysts.

The Commerce Department will report on new home sales at 15:00 GMT. New home sales are projected to fall 4.7% in November.  Other US data releases on Friday including the Michigan consumer sentiment index and the Kansas City Fed’s manufacturing index.

22 December EURUSD Fundamental Outlook

The EUR/USD traded within a narrow range on Thursday, as investors awaited fresh trading catalysts in the form of economic data. The EUR/USD exchange rate was last down 0.1% on Friday to 1.1849. Cable faces immediate support at 1.1815, the low from Thursday. Resistance is likely found at 1.1900.

Disclaimer

This article about 22 December EURUSD Fundamental Outlook should substitute for professional marketing consulting. Forex margin trading involves substantial risks. Forex margin trading exposes participants to risks including, but not limited to, changes in political conditions, economic factors, and other factors. All of which may substantially affect the price or availability of one or more foreign currencies.

Also, speculative trading is a challenging prospect, even to those with market experience and an understanding of the risks involved.

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