the daily chartist

EUR/USD recap for 02.12.2015

published 6 years ago

 The euro (and everything else against the us$) didn't find any love yesterday after the stronger ADP numbers. They came in at 217k, prior 196k. ADP data boosted the dollar, USD/JPY made new highs, and the euro made new lows. Softer inflation data for the Euro also put some pressure on the price. Euro demand was evident all over the place earlier in yesterday's session, but now the EZ CPI data tips the scales back in favour of the ECB taking some action today. Huge option expired yesterday at 1.0600 strike target, worth 4 bln. After all the bearish moves, price from its low 1.05503 pushed up back towards the strike target and closed near it at 1.06143. 

 FED speakers were next. Lockhart first, he stated: 

 "December meeting may be historic."

  • Supports view that inflation is transitory
  • Moderate pace of growth should be sustainable
  • UC economy closing in on full employment
  • Criterion of job market improvement has been met
  • Gross domestic income signals solid economic growth
  • Liftoff compelling unless data shifts drastically

 As for Yellen's comments on inflation, here is a close look 

 Euro's fate resides now in what Draghi will tell today. A possibility after the inflation is that they will implement more QE or take any other action. Seems that FED is ready for a liftoff which will send the dollar to new all time highs. Euro is seeing some support at 1.05666 and if broken, next is 1.04723.