The main currency pair completed the second week of December with a gain, and apparently is ready for surprises from the Fed.
On Monday, 14 December, the euro/dollar is trading around the level of 1.0980 and is not ready to retreat more than the external background suggests. Thus ,the main currency pair is not particularly responsive to oil upgrading its seven year low - the foreign exchange market has its own priorities and goals.
Today it was announced that the industrial production in the euro zone at the end of October rose by 0.6% m/m after the rise of the previous month by 0.3% m/m. The forecast assumed that the index will rise by 0.3% m/m. Yearly the indicator rose by 1.9% against September's level of 1.3% y/y.
The current increase in growth looks good. It points to some recovery in industrial production in the sector, although it is recognized that in the October report there is a share of technical correction to the previous weak data.
The most important thing for the euro/dollar and other traded currencies will happen immediately after the announcement of the outcomes of the December meeting of the Federal Reserve System. The market needs facts to move on. Until the completion of the Fed meeting this week, the main currency pair will try to stay in the range.
RoboForex Analytical Department
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