(News Bulletin 247) – The single currency, subject to occasional profit taking yesterday, is already rebounding on Wednesday, with the support of the final data from the PMI Services indicators. The component for the Euro Zone as a whole significantly exceeded the first estimates for the month of December, coming to stand at 49.8 points, one iota from the 50-point mark, which separates, as a reminder, a contraction of an expansion of the sector considered.
Synthetic data (industry included) are therefore now available, and the monetary union posted a score of 49.3 in December, against 47.8 in November.
Joe Hayes, Senior Economist at S&P Global Market Intelligence, provided the following key insight: “The Eurozone economy continued to deteriorate in December, but the strength of that deterioration eased for the second consecutive month. , tentatively indicating a contraction in the economy that may be milder than initially expected.Smaller declines were also seen broadly in eurozone countries, and most notably in Germany, whose economy was the main drag on the eurozone as a whole in the second half of this year.”
On the inflation side, the week will be particularly dense in benchmarks on employment, the degrees of tension of which are an essential component of the equation for rising prices. To be followed in particular the new job offers (JOLTS) this Wednesday, the survey of the ADP cabinet and the weekly registrations for unemployment benefits on Thursday, and as a highlight on Friday the NFP report on employment in the private sector ( excluding agriculture).
At midday on the foreign exchange market, the Euro was trading against $1.0620 around.
KEY GRAPHIC ELEMENTS
The break of the 20-day moving average (in dark blue), which has served us so far as a trailing stop (trail stop) perfectly materialized, imposes to cut the buying positions, while waiting for a relevant entry point. However, no pronounced bearish reversal pattern has been identified.
MEDIUM TERM FORECAST
In view of the key graphic factors that we have mentioned, our opinion is neutral in the medium term on the Euro Dollar (EURUSD).
We will maintain this neutral opinion as long as the Euro Dollar (EURUSD) parity prices are positioned between the support at 1.0435 USD and the resistance at 1.0746 USD.
CHART IN DAILY DATA
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