The main currency pair is exhausted at the end of the year - investors will still have a chance for active trading, but later.
The euro traded steadily in tandem with the US dollar. The current quotation of the main currency pair is 1.0863. There has not been much activity in the instrument for the past few days, but it is logical, as investors got their hands on all the relevant facts, accounted them in their prices and are quietly waiting for Christmas. The end of this week will be calm: the Catholic world is away for the holidays, and it is the time when activity sharply falls.
Today, Germany has reported on the Producer Price Index for November. The index sank 0.2% m/m (-2.5% y/y). This is the maximum fall in the index y/y in six years, it is based on a long period of low energy prices. According to the prevailing trends, the recession here will continue for several months - the cost of raw materials is not going to recover quickly.
Excluding the cost of energy, the producer price index in November also fell by 0.2%. This component proves that the problem is not just in raw materials and other energy sources. Deflationary ghosts of the euro zone are not so easy to defeat.
It seems that in the coming days, the euro/dollar is unlikely to leave the borders of 1.0810-1.0945. Not much statistics is planned for this week and no important events are expected. This market lull is a normal phenomenon in the run up to Christmas.
RoboForex Analytical Department
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