The Euro remains well supported against the US dollar as we head into the European trading session which is quite surprising considering the strong GDP number from the US that hit the market yesterday. There is one last test for the European currency before we head into the Christmas break and that is the release of the Core Personal Consumption Expenditures Price Index and durable goods orders figure later today.
The latter, which is the Federal Reserve’s preferred inflation is predicted by analysts to hit the market unchanged at 0.2% MoM. while the Annualized forecasts are predicted to come in at 4.7% YoY versus 5.0% in the previous readings. The US Durable Goods Orders figure is also expected to come in lower at 0.6% in November compared to the previous increase of 1.1% last month.
If predictions are correct, we may see the Euro hang on to its gains against the greenback it has made over the last 2 weeks but if we see the same scenario as yesterday where the inflations data came in above expectations the Euro is likely to see some type of selloff before the close of trade today.
In any case, the selloff should be limited because as we can see on the chart the Euro has received solid support around the 1.570 mark over the last 8 trading session and this will be hard to break before the end of the day.