EUR holds positions. Overview for 16.12.2022

16 декабря 2022 - Fx4News

The market major used the US statistics quite efficiently. The current quote is 1.0650.

EURUSD is trying and trying to grow, though investors look quite tired after the active week.

The US statistics published yesterday demonstrated a decline in November retail sales by 0.6% m/m, while a decline by 0.2% had been forecast after previous growth by 1.3% m/m. Retail sales minus cars dropped by 0.2% m/m, while the forecast had suggested growth by 0.2%. Industrial production in the US in November dropped by 0.2% m/m upon falling in October by 0.1% m/m. Meanwhile, growth by 0.2% m/m had been expected. Production power load dropped to 79.7% from 79.9% previously.

Obviously, the US economy is falling deeper in recession though officials would not admit it.

The December meeting of the European Central Bank resulted in the expected increase in the interest rate by 50 base points, to 2.50% a year. The rhetoric of the regulator was unexpectedly tough, but this only supported the EUR. Christine Lagarde commented that global growth had slowed down due to tightening of financial conditions; weakening of the economy might lead to a certain increase in unemployment. Financial measures can increase inflation stress but the ECB risks it to reach long-term goals. Judging by their reactions, investors were satisfied.