The single currency, the euro, fluctuated in a narrow range sloping upward during the Asian session to witness its stability near its high in two and a half years against the US dollar on the cusp of economic developments and data expected today, Wednesday, by the economies of the euro area and the US economy, the largest economy in the world, which includes the actions of the Federal Committee meeting For the open market 15-16 December and Eurogroup meetings.
At 06:37 AM GMT, the euro pair rose against the US dollar by 0.10% to 1.2163 levels compared to the opening levels at 1.2151, after the pair achieved its highest level during the session's trading at 1.2165, while the pair achieved its lowest level at 1.2145.
The markets are looking forward to both the French economy, the second largest economy in the eurozone, and the German economy, the largest in the region, in addition to the economies of the region as a whole, unveiling the preliminary reading of the Markit index of industrial and service purchasing managers for this month, which may reflect the shrinkage of the service sector in France and the eurozone and the widening of the contraction in Germany, the expansion of the industrial sector in France and the contraction in Germany and the region.
This comes before we witness by the economies of the region the release of the seasonally adjusted reading of the trade balance index, which may reflect a narrowing of the surplus to a value of 22.1 billion euros compared to 24.0 billion euros last September, in conjunction with the activities of the Eurogroup meetings attended by the finance ministers of the member states. In the Eurozone, Commissioner for Economic and Monetary Affairs and the European Central Governorate.
On the other hand, investors are waiting for the US economy to reveal the retail sales index, which represents about half of consumer spending, which accounts for more than two-thirds of the US GDP, and which may reflect a 0.3% decline compared to a 0.3% rise in October, while The core reading of the same index may show growth slowing to 0.1%, from 0.2% in October.
This comes before we witness the unveiling of the preliminary reading of the Markit Industrial and Service Purchasing Managers Index from the United States, which may reflect the contraction of the industrial sector in the largest industrial country in the world to 55.9 compared to 56.7 in the previous reading for the month of November, and the expansion of the service sector to 55.7 in November, compared to 58.4.
Up to the disclosure of housing market data, with the release of the housing index reading by the National Association of Home Builders, which may reflect a decline to 88 from 90 in November, in conjunction with the release of the final reading of the wholesale stocks index, which may indicate slowing growth to 0.6% compared to 0.7 % In September, and this also coincides with the meeting of the Federal Open Market Committee in Washington.
It is expected that monetary policy makers at the Federal Reserve Bank will keep the short-term reference interest rates at their lowest level ever, between zero and 0.25% for the sixth consecutive meeting, while revealing the expectations of the members of the Committee for growth rates, inflation and unemployment in addition to the future interest rates. For the next three years, half an hour before Fed Governor Jerome Powell's press conference.
Technical analysis
The euro against the dollar is showing new positive trades now, approaching the level of 1.2177, and getting continuous positive support from the 50 moving average, to support the continuation of our expectations for the bullish trend, waiting to surpass the aforementioned level to confirm the opening of the way to head towards our next target, which reaches 1.2300.
Consolidation above 1.2110 is important for the continuation of the expected rise, as breaking it will pressure the price to initially test 1.2040 areas before any new attempt to rise.
The expected trading range for today is between 1.2080 support and 1.2250 resistance
The expected general trend for today: Bullish