The EUR / USD pair is trading near weekly highs. Investors continue to win back the results of the ECB meeting held on Thursday and the data on the US labor market published on the same day.
European Central Bank (ECB) President Christine Lagarde said the euro exchange rate was not targeted during a central bank meeting on Thursday. However, she added: “But it is clear that the exchange rate, and in particular the appreciation of the euro, plays an important role and puts downward pressure on prices, so we will continue to monitor it very closely in the future. ... ".
The ECB also decided to start a new round of monetary stimulus totaling to 500 billion euros ($ 605.19 billion). The program is aimed at supporting the EU economy in the context of the COVID-19 pandemic. Thus, the total amount of the financing program has been increased to 1.85 trillion Euro. The ECB noted that the program will be extended until at least March 2022.
In the US on Thursday, disappointing data on claims for unemployment benefits were published. During the week, the number of requests increased by 853 thousand, against 716 thousand last month. The data show that the pandemic is increasing pressure on the US labor market and the country's economy as a whole.
In the United States today, all attention will be directed to negotiations between Republicans and Democrats on a new package of economic stimulus measures. Many hope that today the parties will approve the funding program.
In the economic calendar, we follow the publication of data on changes in producer prices for November in the United States. In Europe, the focus will be on the EU summit and news on the progress of trade negotiations between the UK and the EU.
On the chart, the price returned to resistance 1.2165. Today we are waiting for the breakdown of this level and the growth of quotations to the area of 1.2200.
The main scenario is a decline to 1.2100 and an increase to 1.2200.
An alternative scenario is growth to 1.2200 from current levels.
The current fundamental outlook is neutral. We consider longs from the level of 1.2100.
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