Euro managed to stay above 1.09 handle entering Christmas holidays
The EUR/USD was virtually unchanged since the European Central Bank rattled global foreign exchange markets on December 3 with an unexpected decision to approve only limited easing measures with its comprehensive asset-purchasing program. Following the shocking announcement by ECB president Mario Draghi, the euro surged more than 3% against the dollar on the session, one of its strongest one-day moves of the year.
On the other hand Fed's rate hike did not have major impact on the markets. Core PCE prices, the Fed's preferred gauge for inflation, have fallen below its targeted goal of 2% for every month over the last three years. Yellen expects long-term inflation to move toward the Fed's targeted objective, as temporary factors from a stronger dollar and dwindling oil prices fade. At last week's historic meeting, the FOMC projected that the upper-bound range for the Fed Funds Rate will increase a full percentage point to 1.5% by the end of 2016. The estimates imply that the FOMC could approve four modest rate hike throughout the course of next year.
Euro is currently being traded around 1.0950 area. Pair is likely to find support around 1.09 handle and resistance above 1.0980 level. Later today, in the US session, Unemployment Claims figures are scheduled for a release.
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