EURUSD Fundamental Analysis Ahead of US Data


The US dollar consolidates as the US data disappoints. Declining Treasury yields support EURUSD amid concerns over trade deals. Volatile movements cannot be ruled out amid pre-Xmas thin trading. Here is the EURUSD Fundamental Analysis of 24 December, 2019. 

24 December, 2019 | AtoZ Markets – The EURUSD pair is lacking directional bias. It extends the Asian consolidation mode below 1.1100 into early European trading, with little relevance on the cards amid X-mas Eve thin market conditions.

EURUSD Fundamental Analysis – 24 December 2019

Against the US dollar downside consolidation, the EURUSD pair continues to be supportive so far on Tuesday. However, the trading ranges remain tight with the approach of the end of year holidays and a lack of fresh fundamental catalysts. All major European markets closed today due to Christmas Eve.

The greenback trades are depressed compared to its main competitors, as sentiment remains dampened by the US Durable Goods Orders downside surprise. The spot briefly picked up bids following the disappointment of the US data. And it moved towards 1.1100, then to face a rejection at 1.1096, which continues to cap the attempts to increase.

Meanwhile, new concerns over the US-China trade deal, with Chinese officials still unconvinced of the US intentions to conclude the phase one trade deal. So, keep the risk tones tepid and weigh on risky assets such as US Treasury yields. This will probably help to limit the downside risks. Chinese diplomat Wang Yi said:

“US should work to get bilateral ties back on track.”

The main currency pair will remain at the mercy of headlines, the dynamics of the dollar and the scarcity of trade. However, volatile movements cannot be excluded from the table due to the lightness of trading. The Richmond Fed manufacturing index will be released, which is likely to have virtually no impact on the markets.

Read More: 24 December Free GBP/USD, EUR/USD, BTC/USD and ETH/USD Trading Signals

US Data

The dollar index (USD) is at 97.645, Monday’s high was at 97.820. Orders for non-defence capital goods, excluding planes, business spending plans, rose just 0.1% in November, slightly below market expectations.

Capital spending in the United States is likely to stagnate in the coming months. Boeing (N: BA) announced last week that it would suspend production of its top-selling 737 MAX airliner. Because two fatal crashes of the aircraft now immobilized on the ground. The firm’s failure to resolve its crisis led it to oust its general manager Dennis Muilenburg on Monday.

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