It is a steadier session for euro as some of the largest European banks are being closed in observance of Christmas Eve holiday and without any data releases from Eurozone. Euro remains under pressure as Eurozone economy is far from exit gates of recession and with growth rate slowing down even in Germany. Deflation concerns persist, with inflation at only 0.3%, far away from ECB 2% target despite all the monetary measures, which means that we could be seeing another round of additional monetary stimulus quite soon.
USD continues to gain on its value supported by recent US data which indicates stability and constant raise in labour market, while GDP for the third quarter showed 5% growth, much above forecasted incline. This also points out that Fed could be raising interest rates soon, perhaps even in the first quarter of 2015, though Fed officials are still not hinting at any particular date.
Euro gained few points and is currently being traded slightly below 1.2190 level. Pair is likely to find support around 1.2150 level and resistance above 1.2220 area. Later today, in the US session, Unemployment Claims figures are scheduled for a release.
