Will the Euro/Dollar Pair, Currently in a Stalemate, Find a Clear Direction?

Will the Euro/Dollar Pair, Currently in a Stalemate, Find a Clear Direction?

13.12.2021

Last weekend, the three major U.S. stock indices all rebounded, leading to a market environment characterized by rising stock prices, falling interest rates, and higher crude oil prices.Amid strong economic indicators released last weekend, the yield on the 10-year U.S. Treasury note fell, creating a market environment conducive to buying. WTI crude oil rose to $72.6, while the fear index (VIX) fell by about 13% to 18.6.

The foreign exchange market opened without any significant gaps, and the stalemate between the U.S. dollar and the euro continues.The EUR/USD pair is trading around 1.129 as it searches for direction, having yet to break out of the range it has been in since the end of last month. On the daily chart, we will be watching carefully to see if the pair breaks through either the recent low of 1.118 or the recent high of 1.135.

Today, the Bank of England (BOE) will release its Financial Stability Report at 4:00 p.m., followed by Turkey’s current account balance and industrial production figures. At 5:30 p.m., Hong Kong’s Producer Price Index and Industrial Production Index will be released. Other than these, no major speeches by key officials or economic indicators are scheduled.This week, the UK Consumer Price Index and the U.S. FOMC policy rate decision and statement are scheduled for Wednesday, the 15th,on Thursday, the 16th, the Swiss National Bank (SNB) will announce its policy rate, and the Bank of England (BOE) will announce its policy rate. The market is likely to adopt a wait-and-see stance, particularly until the U.S. FOMC meeting on Wednesday, the 15th. Today, ahead of the FOMC meeting, we want to closely monitor how the balance between European currencies and the U.S. dollar evolves.