During the trading session on Thursday, the European currency is moderately growing against the US dollar, holding positions at 1.2100. The recovery dynamics of the euro is limited by technical factors, as well as uncertainty about the trade deal between the EU and the UK. Serious contradictions continue to prevent London and Brussels from reaching an agreement on free trade and the format of future relations after the UK's exit from the European Union (Brexit), the parties will continue consultations, and the final fate of the negotiations should be decided before the end of the weekend - by December 13.
Earlier this was announced by a representative of the office of the head of the British government after a three-hour working dinner held in Brussels on Wednesday, in which the Prime Minister of the United Kingdom Boris Johnson, the head of the European Commission Ursula von der Leyen and the main negotiators from the UK and the EU took part. Despite the fact that Brexit is more of a British story, the European economy could also suffer in the event of a “hard” exit from the UK from the EU.
In addition to the situation around Brexit, today's ECB meeting is in the spotlight of traders. It is expected that the European regulator will not introduce negative interest rates, but will take other measures aimed at further easing monetary policy. The European Central Bank is projected to add about € 500 billion to its Pandemic Emergency Procurement Program (PEPP). The economic forecasts of the ECB and the opinion of President Christine Lagarde on the euro exchange rate may have an even greater impact on the euro. Most likely, the European regulator will characterize the current EUR / USD rate as not posing a threat to price stability. In this scenario, the pair will continue to grow.
The European currency will also continue to receive support amid hopes that EU leaders at the upcoming summit will approve a deal to stimulate the Eurozone economy by $ 2.2 trillion. This became possible after Poland and Hungary lifted their veto on the EU stimulus package in exchange for postponing the sanctions process, which could deny them access to crisis funds. Considering the above, we recommend buying back the euro at each decline to the support area of 1.2000-1.2050.
EUR / USD BuyLimit 1.2030 TP 1.2250 SL 1.1960
Analytical reviews and comments to them reflect the subjective opinion of the authors and are not a recommendation for trading. Author Artem Deev is a trader analyst at AMarkets . The social network of traders is not responsible for possible losses in case of using the review materials
