Spanish CPI stands at 0.0% in December

EUR/USD Daily Forecast – 30 December

The euro held its gains in thin trading Tuesday, after a European Central Bank (ECB) official hinted at another wave of stimulus, while fears about China's economy dented the yuan. ECB executive board member Yves Mersch said policymakers have “by no means used up all our ammunition”, according to an excerpt from an interview with the International Bankers Forum. The possibility of more easing - which would tend to weaken the euro - comes after the ECB disappointed markets this month with the limited scope of its newest bid to revive the struggling eurozone economy.

EUR/USD Daily Forecast – 30 December

After it initially once again tested area near 1.10 handle as a resistance, pair sharply pulled back in the US part of the session, going all the way to 1.09 handle. These kind of movements do not come as a surprise in a holiday trading. However, pair managed to find some amount of support around 1.09 handle and rebounded slightly by the end of the session. Read more...

EUR/USD Daily Forecast – 29 December

There were no data releases yesterday. Luxembourg Central Bank Governor Mersch talking to International Bankers Forum said that ECB has by no means run out of ammunition. It still has firepower and deposit rate theoretically are not at lower bound. He uttered that QE will run as long as necessary to reach their goal sustainably and that ECB can add on at anytime should this be necessary.