- The euro remains above 1.0600, with an eye on a year-end close above this figure.
- Initial claims for US jobless benefits exceeded the previous week’s reading, showing that the job market is easing.
- EUR/USD: Sideways, but if it breaks above 1.0700, it could hit a new all-time high; otherwise, it would consolidate around 1.0600.
The euro (EUR) maintained its gains against US dollar (USD)as sentiment improved ahead of the last trading day of 2022. Data from the United States (US) showed a slight rebound in jobless claims, buoying the EUR/USD, while the easing of China’s Covid-19 restrictions keeps investors on edge. At the time of writing, the EUR/USD pair is trading at 1.0660.
The increase in applications for unemployment benefits in the US weighed on the dollar
US economic data released by the Department of Labor (DoL) showed initial jobless claims for the week ending December 24 jumping to 225,000, in line with expectations, and 9,000 above record from the previous week. Meanwhile, continuation requests rose to 1.7 million in the week ending December 17, the highest number since early February.
Apart from this, since the authorities relaxed their zero tolerance policy, the increase in Covid-19 cases in China is overwhelming the country’s healthcare system. In addition, flights from China that landed in Italy provoked a reaction from Western countries, with some reimposing tests on people flying from China.
On the other hand, the Russian invasion of the Ukraine intensified, with reports of bombing attacks on kyiv and other cities.
Meanwhile, on the economic agenda of the Euro zone, the Retail Sales of Spain stand out, which surpassed the 0.4% of the previous month and rose 3.8%, while the M3 money supply of the EU for November fell to 4.8% year-on-year, compared to to estimates of 5%.
Inflationary data for Spain will be published on the Eurozone economic agenda, while the Chicago PMI for December will be published on the US agenda.
EUR/USD Price Analysis: Technical Insights
As usual, the EUR/USD has continued to trade higher during the last ten days of the year. However, oscillators like the Relative Strength Index (RSI) suggest that the shared currency could start the year on a higher note, while the Rate of Exchange (RoC) is flat. If EUR/USD breaks above the Dec 28 high at 1.0674, it could pave the way for a test of 1.0700. Once broken, the next resistance would be the high at 1.0736. As an alternative scenario, the first support for the EUR/SUD would be 1.0600, followed by last week’s low at 1.0573 and the 20-day EMA at 1.0564.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
