MENU Show navigation FXStreet Trading Studio EUR/USD Editorial Tools Latest Share on Twitter Share on Facebook Share on Linkedin EURUSD FORECAST AND NEWS EUR/USD slides sub-1.1300 as the dollar accelerates advance EUR/USD finally broke below 1.1300, helped by encouraging US employment-related figures ahead of the November jobs report. ECB officials still holding back on tapering. LATEST EUR NEWS EUR/USD retreats from daily tops around 1.1340s cling to 1.1300 By Christian Borjon Valencia | 18:45 GMT EUR/GBP Price Analysis: The break of an ascending triangle in the 4-hour chart targets 0.8570 By Christian Borjon Valencia | 17:10 GMT EUR/USD to plunge towards 1.10 through 2022, scope for USD/JPY to skyrocket as high as 120 – ING By FXStreet Insights Team | 14:59 GMT Technical Overview Chart Tools The EUR/USD pair is hovering around a Fibonacci level, down for a second consecutive day. The risk is skewed to the downside, according to the daily chart, as the pair retreated from around a firmly bearish 20 SMA for a third consecutive day, while technical indicators pared their corrective advances and turned flat within negative levels. The bearish momentum is strong in the near term, as the 4-hour chart shows that technical indicators head firmly lower, as the price broke below its 20 SMA for the first time this week. The 100 SMA has continued to attract sellers, maintaining a bearish slope. While technical indicators dipped further in the red. The pair could pierce the year low at 1.1185 and reach the 1.1160 price zone, the next relevant support area. Support levels: 1.1260 1.1210 1.1165 Resistance levels: 1.1345 1.1380 1.1425 Fundamental Overview GMT Event Vol. Actual Consensus Previous THURSDAY, DEC 02 14:00 EUR ECB's Panetta speech 15:30 USD EIA Natural Gas Storage Change -59B -57B -21B 16:30 USD 4-Week Bill Auction 0.040% 0.125% n/a USD Total Vehicle Sales 13M 21:30 AUD AiG Performance of Construction Index 57.6 22:00 AUD Commonwealth Bank Services PMI 55 55 22:00 AUD Commonwealth Bank Composite PMI 55 FRIDAY, DEC 03 00:30 JPY Jibun Bank Services PMI 50.7 01:45 CNY Caixin Services PMI 53.8 07:45 EUR Industrial Output (MoM) 0.5% -1.3% The EUR/USD pair pierced the 1.1300 level as the dollar rebounded following encouraging US data and higher US Treasury yields. The country reported that Initial Jobless Claims contracted to 222K in the week ended November 26, while job cuts plunged to 14,875 in November, the lowest monthly reading since May 1993 according to the Challenger report. The positive employment-related news came ahead of the release of the Nonfarm Payrolls report on Friday. Wall Street also cheered good news putting aside concerns related to the Omicron coronavirus variant. The Dow Jones Industrial Average is up nearly 700 points while the S&P500 added roughly 2% at the time being. Meanwhile, different US Federal Reserve officials backed chief Jerome Powell’s recent words. Federal Reserve Bank of San Francisco President Mary Daly said the Fed might need to taper asset purchases faster than anticipated, while Richmond President Thomas Barkin said inflation has gone up faster than he expected due to the virus, vaccines and fiscal support. Across the pond, European Central Bank policymaker Fabio Panetta said that inflation and the new pandemic wave is endangering the Union’s recovery at an early stage, although earlier this week, he noted that there’s no need to tighten monetary policy to control inflation, driven by temporary factors. The EU published the October Producer Price Index, which skyrocketed to 21.9% YoY, after rising by 5.4% in the month. The Union’s unemployment rate contracted to 7.3% in the same month, as expected. On Friday, Markit will publish the final version of the November Services PMIs, while the US will unveil the official ISM Services index for the same month. The focus will be on the Nonfarm Payroll report. The country is expected to have added 550K new jobs in November, while the unemployment rate is seen contracting to 4.5% from 4.6%. SPECIAL WEEKLY FORECAST Interested in weekly EURUSD forecast? Our experts make weekly updates forecasting the next possible moves of the euro-dollar pair. Here you can find the most recent forecast by our market experts: EUR/USD: Central banks in denial about inflation and a new coronavirus variant shaking the FX board PREMIUM US inflation surged to its highest in three decades, Fed officials becoming concerned. A new coronavirus variant that may evade immune response spurred risk-aversion. EUR/USD is correcting oversold conditions, additional gains are still unclear. Read full analysis Big Picture EUR/USD BULLISH THEMES EUR/USD BEARISH THEMES LATEST EUR ANALYSIS EUR/USD Forecast: Dollar firms up ahead of the Nonfarm Payrolls report PREMIUM By Valeria Bednarik | 54 minutes ago EUR/USD analysis: Remains in previous range By Dukascopy Bank Team | 14:31 GMT EUR/USD wavers after strong Eurozone producer inflation data By OctaFx Analyst Team | 14:29 GMT EUR/USD Forecast: Range tightening, directional breakout around the corner? PREMIUM By Valeria Bednarik | 13:49 GMT Nonfarm Payrolls Preview: Jobs’ headline could be a make it or break it in tapering’s decision PREMIUM By Valeria Bednarik | 13:14 GMT EUR/USD: A bullish 2022? By Francesco Bergamini | 12:35 GMT Currency market: EUR/JPY vs USD/CAD levels and correlations By Brian Twomey | 11:07 GMT Elliott Wave analysis: EUR/USD remains consolidating By Gregor Horvat | 10:39 GMT EUR/USD outlook: Conflicting techs keep the euro in directionless mode, US jobs data in focus By Slobodan Drvenica | 09:25 GMT EDITORS' PICKS EUR/USD slides sub-1.1300 as the dollar accelerates advance EUR/USD finally broke below 1.1300, helped by encouraging US employment-related figures ahead of the November jobs report. ECB officials still holding back on tapering. EUR/USD News GBP/USD clings to modest recovery gains above 1.3300 GBP/USD is edging higher toward 1.3330 in the second half of the day on Thursday as the greenback stays under modest selling pressure. The US Department of Labor reported that there were 222,000 initial claims for unemployment benefits last week. GBP/USD News USD/JPY climbs further beyond 113.00 mark, fresh daily high USD/JPY gained strong positive traction on Thursday amid a turnaround in the risk sentiment. Rising Fed rate hike bets acted as a tailwind for the USD and remained supportive of the move. Worries about Omicron variant could underpin the safe-haven JPY and cap any further gains. USD/JPY News Gold: Pressure persists November low at risk of giving up Gold fell to a 1-month low of $1,763.33 a troy ounce, bouncing just modestly from it and currently trading around 1,767.00. The bright metal weakened the most during US trading hours, as the American dollar met some market’s favour. Gold News WTI: Awaits OPEC+ decision while within a symmetrical triangle WTI (NYMEX futures) has stalled its rebound heading into the OPEC and its allies (OPEC+) meeting, starting at 1300 GMT on Thursday. Oil News MAJORS CRYPTOCURRENCIES SIGNATURES EURUSD YEARLY FORECAST How could EURUSD move this year? Our experts make a EUR/USD update forecasting the possible moves of the euro-dollar pair during the whole year. Don't miss our 2021 EURUSD forecast! EURUSD FORECAST 2021 In the EURUSD Forecast Price 2021, our dedicated contributors expect the bearish trend to slow down during the year. By the end of the year 2020, the average outlook for the pair was 1,2234. Read more details about the forecast. From Jan 2020 to Dec 2020, the maximum level for the EURUSD (Euro US Dollar) was 1.2282 (on 17/12/20), and the minimum, 1.0645 (on 19/03/20). MOST INFLUENTIAL POLITICAL EVENTS IN 2021 FOR EURUSD A pandemic disrupted financial markets and the global economy in 2020, and the greenback is the overall loser. The US management of the pandemic resulted in 18 million people infected and roughly 325,000 deaths. It also cost Trump's government, who lost the re-election to Democrat rival Joe Biden. Social distancing, face-masks and remote working are part of a new normal that will likely continue through 2021. Central banks' measures will be key for EUR/USD moves this next year. INFLUENTIAL INSTITUTIONS & PEOPLE FOR THE EUR/USD The Euro US Dollar can be seriously affected by news or the decisions taken by two main central banks: The European Central Bank (ECB) The European Central Bank (ECB) is the central bank empowered to manage monetary policy for the Eurozone and maintain price stability, so that the euro’s purchasing power is not eroded by inflation. The ECB aims to ensure that the year-on-year increase in consumer prices is less than, but close to 2% over the medium term. Another of its tasks is one of controlling the money supply. The European Central Bank’s work is organized via the following decision-making bodies: the Executive Board, the Governing Council and the General Council. Christine Lagarde is the President of this organism. ECB Official Website, on Twitter and YouTube The Federal Reserve Bank (Fed) On the other hand we found The Federal Reserve System (Fed) wich is the central banking system of the United States. Fed has two main targets: to keep unemployment rate to their lowest possible levels and inflation around 2%. The Federal Reserve System's structure is composed of the presidentially appointed Board of Governors, partially presidentially appointed Federal Open Market Committee (FOMC). The FOMC organizes 8 meetings in a year and reviews economic and financial conditions. Also determines the appropriate stance of monetary policy and assesses the risks to its long-run goals of price stability and sustainable economic growth. FED Official Website, on Twitter and Facebook Christine Lagarde Christine Lagarde was born in 1956 in Paris, France. Graduated from Paris West University Nanterre La Défense and became President of the European Central Bank in November 1st 2019. Prior to that, she served as Chairman and Managing Director of the International Monetary Fund between 2011 and 2019. Lagarde previously held various senior ministerial posts in the Government of France: she was Minister of the Economy, Finance and Industry (2007–2011), Minister of Agriculture and Fishing (2007) and Minister of Commerce (2005–2007). Lagarde on ECB'S Profile and Wikipedia Jerome Powell Jerome Powell took office as chairman of the Board of Governors of the Federal Reserve System in February 2018, for a four-year term ending in February 2022. His term as a member of the Board of Governors will expire January 31, 2028. Born in Washington D.C., he received a bachelor’s degree in politics from Princeton University in 1975 and earned a law degree from Georgetown University in 1979. Powell served as an assistant secretary and as undersecretary of the Treasury under President George H.W. Bush. He also worked as a lawyer and investment banker in New York City. From 1997 through 2005, Powell was a partner at The Carlyle Group. Jerome Powell Fed's Profile and Wikipedia ECB NEWS & ANALYSIS FED NEWS & ANALYSIS ABOUT EURUSD The EURUSD (or Euro Dollar) currency pair belongs to the group of 'Majors', a way to mention the most important pairs in the world. This group also includes the following currency pairs: GBP/USD, USD/JPY, AUD/USD, USD/CHF, NZD/USD and USD/CAD. The popularity is due to the fact that it gathers two main economies: the European and American (from United States of America) ones. This is a widely traded currency pair where the Euro is the base currency and the US Dollar is the counter currency. Since the EURUSD pair consists of more than half of all the trading volume worldwide in the Forex Market, it is almost impossible for a gap to appear, let alone a consequent breakaway gap in the opposite direction. Normally, it is very quiet during the Asian session because economic data that affects the fundamentals of those currencies is released in either the European or U.S. session. Once traders in Europe get to their desks a flurry of activity hits the tape as they start filling customer orders and jockey for positions. At noon activity slows down as traders step out for lunch and then picks back up again as the U.S. comes online. If there is important U.S. data we can expect quiet markets just ahead of the number. U.S. economic news have the ability to either reinforce an existing trend or reverse it depending on by how much it missed or beat expectations with the EURUSD news. By 5:00 GMT liquidity leaves the market once again as European traders close out positions and head home. RELATED PAIRS GBP/USD The GBP/USD (or Pound Dollar) currency pair belongs to the group of 'Majors', a way to mention the most important pairs worldwide. This group also includes the following currency pairs: EUR/USD, USD/JPY, AUD/USD, USD/CHF, NZD/USD and USD/CAD. The pair is also called 'The Cable', reffering to the first Transatlantic cable that was crossing the Atlantic Ocean in order to connect Great Britain with the United States of America. This term was originated in the mid-19th century and it makes GBP/USD one of the oldest currency pairs in the world. The popularity of the Pound Dollar is due to the fact that represents two strong economies: British and American (from United States of America). The Cable is a widely observed and traded currency pair where the Pound is the base currency and the US Dollar is the counter currency. After the result of the Brexit referendum, where the majority of the British voted to abandon the European Union, GBP/USD has been suffering some turbulence in the Forex market as a consequence of the associated risks of leaving the single market. USD/JPY The USD/JPY (or US Dollar Japanese Yen) currency pair is one of the 'Majors', the most important pairs in the world. Japanese Yen has a low interest rate, normally used in carry trades, that's why is one of the most trades currencies worldwide. In the USD/JPY the US Dollar is the base currency and the Japanese Yen is the counter currency. The pair represents American (from United States of America) and Japanese economies. Trading the USD/JPY currency pair is also known as trading the "ninja" or the "gopher", although this last name is more frequently used when reffered to the GBP/JPY currency pair. The US Dollar Japanese Yen usually has a positive correlation with the following two pairs: USD/CHF and USD/CAD. The nature of this correlation is dued to the fact that both currency pairs also use the US Dollar as the base currency, such as USD/JPY. The value of the pair tends to be affected when the two main central banks of each country, the Bank of Japan (BoJ) and the Federal Reserve Bank (Fed), face serious interest rate differential. ©2021 "FXStreet" All Rights Reserved Disclaimer