EUR/USD: consolidating on 2000 – 2015 support line

By FXStreet FXStreet (Guatemala) – EUR/USD is consolidating the downside on a key week. The morning in Europe was trickle of offers in a greenback dominated environment, plus worse than expected German retails and in line CPI, albeit higher Y/Y and m/m than prior by 0.1%.

The US session let out some disappointments in data for the US economy, but markets are looking ahead to the Nonfarm Payrolls and the overall picture remains with the anticipation of a Fed hike against a backdrop of a leading economy and subsequent divergence between the Fed and ECB.

The ECB is a key focus this week. They have over easing 20 options available at their disposal, of which analysts at TD Securities still feel that they could surprise the market, outside of the general consensus of further easing of EUR30bn and a rate cut in the deposit rates of circa 15bps. As far as Nonfarm Payrolls, markets are not expecting the same kind of performance in the jobs sector as displayed in the last release, but nonetheless expect a decent enough headline figure and stability on wage growth to permit the FOMC to conclude that indeed Dec is an appropriate time for lift-off. …read more

Source:: FX Street