On Wednesday, December 4, the single European currency against the dollar in morning trading consolidates at 1.108 after a slight strengthening a day earlier.
Yesterday, on Tuesday, the dollar index weakened significantly, continuing the direction taken on Monday to the south, with the US currency more pronouncedly sagged against the Swiss franc and yen than against the euro – a sudden decline in the interest of players in the U.S. currency contributed to the first macroeconomic statistics released at the start of the week (remember, the index of economic conditions of ISM in the manufacturing sector of the United States in November fell to 48. destructive rhetoric by US President Donald Trump.
Trump told reporters that he could delay a trade deal with China until the 2020 presidential election – an unexpected idea that has left the investment community alarmed and the appetite for risk on the stock exchanges has suffered. Against this background, the safe-haven currencies – the Swiss franc and the yen – quickly strengthened, and the dollar went downhill.
It is noteworthy that in pair with the euro the losses of the dollar were very modest – the players seem to realize that the economic situation in the Old World somehow leaves much to be desired and can not compete with the macroeconomic picture in the United States.
Today, the calendar of statistics also includes important indicators. Of the already released in the morning – the index of business activity in the services sector of China Caixin in November increased from 51.1 points to 53.5 points, which in itself is favorable for risk sentiment on the exchanges.
Further during the day there will be indices of business activity in the services sector for Germany and the eurozone, and at 18:00 GMT the November value of the ISM economic conditions index in the non-manufacturing sphere will appear – this indicator can significantly affect the dynamics of the dollar in the moment.
From a technical point of view, on the hourly chart, the pair is groping for a new range of consolidation after breaking through the previous one at the start of the week, and in the coming hours the local sideside may get a continuation.
Saidova Sarina, Lead Analyst in World Markets Analysis at FINAM