- EUR / USD posted modest daily losses on Thursday.
- Earnings ahead of the New Years holidays appear to be weighing on the EUR.
He EUR/USD it is up more than 2% for the second month in a row in December.
After closing the previous four trading days in positive territory, the EUR / USD pair was down slightly on the final day of 2020 and was last seen shedding 0.26% on the day at 1.2265. In November, the pair gained more than 2% and advanced 2.8% in December. For the year, the EUR / USD is up 9.3%.
Earlier in the day, data from the US showed that initial jobless claims fell by 19,000 to 787,000 in the week ending December 26 and were much better than market expectations of 833,000. However, the market reaction to this report was largely silent.
The US dollar index, which tracks the dollar’s performance against a basket of six major currencies, is virtually unchanged on the day at 89.67.
“The bulls will be discouraged if the pair loses the 1.2000 threshold but will not give up unless the pair falls below 1.1600 in the first quarter of the year as it will return to levels below the long-term trend line “says FXStreet. Chief Analyst Valeria Bednarik. “In that case, lower lows will come into play, with the pair set to extend its decline to 1.0351, the multi-decade low recorded in December 2016.”
Technical levels
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