EURUSD Fundamental Analysis Ahead of Fed Meetings


The EURUSD remained near unchanged at 1.1065 in anticipation of central bank meetings and a looming tariff deadline later this week. Here is the EURUSD Fundamental Analysis of 10 December, 2019. 

10 December, 2019 | AtoZ Markets – This week, the US Federal Reserve and the European Central Bank are preparing to hold monetary policy meetings. The two central banks do not expect to announce any significant changes to their policies. But traders will be alert to whether further easing measures are in sight next year.

EURUSD Fundamental Analysis – 10 December 2019

The US dollar index, which tracks a basket of other currencies, remained unchanged at 97.610 at 12:30 pm (04:30 GMT).

On the Sino-US trade front, investors were waiting to see if Washington would go ahead with a tariff increase scheduled for December 15 on Chinese products. Bloomberg reported, US Agriculture Secretary Sonny Perdue said Washington would likely not impose more tariffs on Chinese exports on December 15.

“We have a deadline of December 15 for another slice of tariffs. I do not believe they will be implemented. And we could see a decline,” Perdue said, according to Bloomberg. “There are risks in both directions,” said Imre Speizer, an analyst at Westpac FX.

“Trade is still the key factor. But I think the markets are still reasonably optimistic about risk-seeking. All these small movements are just smoke and noise and do not tell you what’s going on. “The general mood would be cautiously positive.”

Today’s data shows that China’s producer price index fell 1.4% year-on-year, down for the fifth month in a row. The drop compared with the 1.5% expected decline and the fall of 1.6% in October. Meanwhile, November’s consumer price index jumped 4.5% year-over-year, as food prices skyrocketed 19.1% due to an epidemic. African swine fever.

Read More: 10 December Free GBP/USD, XAU/USD and BRN/USD Trading Signals

German ZEW Data

The euro is on the defensive after cutting a big downward candle outside on Friday. Besides, markets now convinced that the Federal Reserve will not cut rates until the November 2020 US presidential election.

Chances seem to accumulate against the common currency. However, the bulls, therefore, need German ZEW surveys and the eurozone for December to exceed expectations.

The indicator of the German economic climate should go from -2.1 to zero and that of the eurozone from -1.0 to -17.0. The publication of the ZEW surveys is scheduled for 10:00 GMT.

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