- EUR/USD is posting modest daily losses on Thursday.
- Profit-taking ahead of the New Year holiday seems to be weighing on the EUR.
- EUR/USD is up more than 2% for the second straight month in December.
After closing the previous four trading days in the positive territory, the EUR/USD pair edged slightly lower on the last day of 2020 and was last seen losing 0.26% on the day at 1.2265. In November, the pair gained more than 2% and is advancing 2.8% in December. For the year, EUR/USD is up 9.3%.
Earlier in the day, the data from the US showed that Initial Jobless Claims fell by 19,000 to 787,000 in the week ending December 26 and came in much better than the market expectation of 833,000. Nevertheless, the market reaction to this report was largely muted.
The US Dollar Index, which tracks the greenback's performance against a basket of six major currencies, is virtually unchanged on the day at 89.67.
EUR/USD 2021 outlook
EUR/USD Price Forecast 2021: Euro-dollar long-term bullish breakout points to 1.2750.
"Bulls will get discouraged if the pair loses the 1.2000 threshold, but won’t give up unless the pair falls below 1.1600 in the first quarter of the year, as it will return to levels below the long-term trend line," says FXStreet Chief Analyst Valeria Bednarik. "In such a case, lower lows will come into play, with the pair poised to extend its decline towards 1.0351, the multi-decade low posted in December 2016."
Technical levels to watch for
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EUR/USD treads water just above 1.0400 post-US data
Another sign of the good health of the US economy came in response to firm flash US Manufacturing and Services PMIs, which in turn reinforced further the already strong performance of the US Dollar, relegating EUR/USD to the 1.0400 neighbourhood on Friday.
GBP/USD remains depressed near 1.2520 on stronger Dollar
Poor results from the UK docket kept the British pound on the back foot on Thursday, hovering around the low-1.2500s in a context of generalized weakness in the risk-linked galaxy vs. another outstanding day in the Greenback.
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Geopolitics back on the radar
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Eurozone PMI sounds the alarm about growth once more
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