Yesterday (27/11), EUR/USD depreciation for the second consecutive day. Ending the session, the pair closed at $1.06080, down 0.14% compared with the opening price $1.06229.
The US market makes Thanksgiving holiday trading volume fell sharply, the vibration amplitude of the pair within a narrow range, from $1.05987 to $1.06266. The green back continued to be supported after a series of US data on Wednesday 4 has strengthened prospects the US Federal Reserve (Fed) raised interest rates in coming months. Specifically, the US Commerce Department reported new home sales figures rose 10.7% to 495,000 units in May 10. Earlier, the US Labor Department announced the number of registered applications for unemployment benefits for the first time in the week ended July 21 / 11 fell 12,000 to 260,000 shares compared to last week.
The figures also showed that orders for durable goods rose 3.0% in the US in October, up dramatically from the 1.5% figure forecast, while the core durable goods orders (excluding transportation) , rose 0.5%, better 0.3% forecast. Prospects for the Fed to raise interest rates, the value rising green back makes Euro has pressured prices.
Moreover, confidence in the Euro continued to weaken since the President of the European Central Bank (ECB), Mario Draghi said on his 6th that the bank is ready to boost the euro-zone inflation zone and may change lending rates to strengthen the influence of the quantitative easing package (QE).
Today the focus will continue to accrue to Europe by the US Thanksgiving holiday. The confidence index of German consumer-largest economy in Europe will be GFK (Institute biggest market Germany) announced at 7:00 pm GMT+ 7. This figure would have been announced yesterday but was rescheduled to today.
Currently, at 14:17 GMT+7, the pair is trading at $1.06266, up 0.17% over the closing price of $1.06080.
Forecast: In the long term, the Euro remains under pressure from the monetary policy of the Fed and ECB polarization. While the ECB is expected to strengthen the easing in its meeting on 3/12, the prospect of Fed tightening economic increasingly strengthened. Today the pair will not fluctuating, predict likely price dropped to $ 1.05600, its lowest level since mid-April.
However, if the index of consumer confidence in Germany exceeded forecasts and contribute 9.2 offering signals of economic recovery the single currency area, the euro may be supported on the $ 1.06700.