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EUR/USD Firm as Markets Prepare for ECB Meeting

December 7, 2016 (Last updated on December 8, 2016) by

EUR/USD was firm today ahead of tomorrow’s meeting of the European Central Bank. Analysts do not expect changes to interest rates, but think that the ECB may extend its quantitative easing beyond the March 2017 threshold.

US crude oil inventories dropped 2.4 million barrels last week, exceeding the analysts’ estimate of a 1.4 million drop and the previous week’s fall of 0.9 million. Still, the stockpiles remained at the upper limit of the average range for this time of year. At the same time, total motor gasoline inventories climbed by as much as 3.4 million barrels (Event A on the chart.)

Consumer credit rose by $16.0 billion in October, failing to meet market expectations of $17.5 billion. The September change was revised from $19.3 billion to $21.8 billion. (Event B on the chart.)

If you have any comments on the recent EUR/USD action, please reply using the form below.

2 Responses to “EUR/USD Firm as Markets Prepare for ECB Meeting”

  1. Ghulam Muhiuddin

    hi Vladimir, what is your point of view on long term eurusd. Do you think It will cross major psychological level 1.0000 in coming months ?

    Reply

  2. Vladimir Vyun

    Hi. While it is certainly possible for the euro to decline further, I personally don’t think that it is going to fall that far. After all, EUR/USD has already fallen rather low, so I would expect some sort of a bounce before the currency pair can go much lower. Of course, I can be totally wrong, especially if anti-EU parties will gain support during elections in Germany and France next year. Also, it’s hard to make any predictions ahead of such major events as the next week’s meeting of the Fed.

    Reply

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