As we expected, euro slowed the downside on the past week, recovering towards the 1.2500 mark. Despite the current consolidation, we stay bearish and expect to see a decline towards the 1.2200 mark in the medium-term. Fix below the 1.2400 support could become a good signal to enter the short market. If the price pushes higher, we recommend selling the rallies towards 1.2650.
Data, released on the past week, show that the euro zone’s economy expanded by 0.2% in Q3 – this is slightly above the forecast of 0.1%. However, the improvement is not really significant and was partially caused by calculation changes, so the figures failed to move the market.
The overall economic picture in the currency block remains gloomy, so the European Central Bank is expected to announce a large-scale bond buying program in the coming months. We remind you that the ABS buying program begins next week.
On the new week watch ZEW economic activity indices on Tuesday and flash PMIs on Thursday. Mario Draghi will deliver a speech twice – on Monday and on Friday.
Data, released on the past week, show that the euro zone’s economy expanded by 0.2% in Q3 – this is slightly above the forecast of 0.1%. However, the improvement is not really significant and was partially caused by calculation changes, so the figures failed to move the market.
The overall economic picture in the currency block remains gloomy, so the European Central Bank is expected to announce a large-scale bond buying program in the coming months. We remind you that the ABS buying program begins next week.
On the new week watch ZEW economic activity indices on Tuesday and flash PMIs on Thursday. Mario Draghi will deliver a speech twice – on Monday and on Friday.
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GBP/USD approaches 1.2500 on renewed USD strength
GBP/USD loses its traction and trades near 1.2500 in the second half of the day on Monday. The US Dollar (USD) benefits from safe-haven flows and weighs on the pair as trading conditions remain thin heading into the Christmas holiday.
Gold hovers around $2,610 in quiet pre-holiday trading
Gold struggles to build on Friday's gains and trades modestly lower on the day near $2,620. The benchmark 10-year US Treasury bond yield edges slightly higher above 4.5%, making it difficult for XAU/USD to gather bullish momentum.
Bitcoin fails to recover as Metaplanet buys the dip
Bitcoin hovers around $95,000 on Monday after losing the progress made during Friday’s relief rally. The largest cryptocurrency hit a new all-time high at $108,353 on Tuesday but this was followed by a steep correction after the US Fed signaled fewer interest-rate cuts than previously anticipated for 2025.
Bank of England stays on hold, but a dovish front is building
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