Jan. 5, 2021
Starting the session at 1.2253, EUR/USD rallied above 1.2311 for the first time in 2 years, gaining 51 pips, and closed at 1.2305.
The Euro/Dollar record rate comes as global asset managers are struggling to make sense of what is next in 2021 while 2020 draws to a close, a year hammered by an unprecedented health crisis, with the WHO's declaration of a COVID-19 Pandemic on March 11. Global markets dropped at record speed to uncharted lows and then backed by a flood of central banks , the trend reversed, and markets surged to all-time highs. The Euro currency followed path ending 2020 on a strong note.
The Euro green move takes place amid mixed market indicators – Germany's Unemployment Change released yesterday at 8:55 AM is better than expected at -37000 but down from preceding data of -40000 according to new data.
More data out today as Data for Germany Retail Sales released yesterday at 7:00 AM is better than expected at 1.9, but worse than the previous figure of 2.6. The Euro Zone Manufacturing PMI published yesterday came out at 55.2, falling short of the 55.5 projections and continuing its decline from the previous 55.5 figure.
Euro broke through the 1.2308 resistance and climbed 3 pips above it. At 1.2256, Euro/Dollar made an initial breakout above the 5 day Simple Moving Average. The CCI indicator is above 100, indicating a possible start of a new uptrend. The upper Bollinger band is at 1.2322, indicating a negative correction might be next. Overall, looking at the technical analysis landscape, it seems the Euro/Dollar likely to continue pointing upward in the short term.
In the meantime, Aussies rallied beyond 0.7712 for the first time in 2 years. After a 2 year hiatus, New-Zealand Dollar is back at 0.7215 levels. At 0.8804, dollar/swiss is down to its lowest value in 5 years. Gold traded above the 1947 level for the first time in 8 weeks and a half.
The market is looking forward to Spain Services PMI projected to outperform the last figure with 45, while it previously stood at 39.5, data will be released today at 8:15 AM. The Euro Zone Composite PMI figure is projected at 49.8 while it previously stood at 49.8, data will be released today at 9:00 AM. France HICP (MoM) (Dec) scheduled to come out today at 7:45 AM. The French Consumer Price Index is expected today at 7:45 AM.