EUR analysis 04.12.2019

The euro currency fluctuated in a narrow range slanting back down during the Asian session to witness its bounce for the second session from its top since November 21, when it tested its highest since the fifth of the same month against the US dollar on the cusp of developments and economic data expected today Wednesday by The economies of the euro area and the US economy are the largest in the world.

At exactly 05:39 AM GMT, the euro against the US dollar fell 0.07% to 1.1074 levels, which is the lowest level for the husband during the trading session, compared to the opening levels at 1.1082, while the pair achieved its highest level during the trading session at 1.1084.

The markets are looking to discover by Spain, the fourth largest economy in the euro area, about the reading of the Services Purchasing Managers Index, which may show a shrinkage in value to 51.9 compared to 52.7 last October, before we witness the reading of the same index for Italy, the third largest economy in the region, which It may also reflect a shrinkage of breadth to 51.2 versus 52.2 in October.

Investors are also looking for France, the second largest economy in the eurozone, to disclose the final reading of the Services PMI, which may show the stability of expansion at 52.9 unchanged from the initial reading for the past month and the previous reading for October, before the final reading of the same indicator for Germany, which It may also illustrate the stability of the amplitude at 51.3, little changed from the previous initial reading, compared to 51.6 in October.

To reveal the final reading of the services PMI for the euro area as a whole, which may show the stability of the expansion at 51.2 unchanged from the previous reading for the previous month of November, compared to 52.2 in October, otherwise, we followed yesterday, Tuesday, the statements of the Minister of Economic Affairs In France, Barnier Rancher said that Paris is sticking to taxation of technology giants

The Minister of Economic Affairs in France, Rancher, also mentioned that France and the United States of America will work to resolve disputes over the tax through the Organization for Economic Cooperation and Development, which put forward a plan regarding taxing technology companies, and this came hours after US President Donald Trump threatened to impose customs duties on French goods and merchandise estimated at $ 2.4 billion, in response to possible French taxes.

In the same context, the European Commission expressed that the European Union will deal as a single bloc to confront the customs duties that the American President threatened to impose on French goods and goods, with the Commission reporting that the decision of the World Trade Organization does not allow America to increase customs duties, as French Finance Minister Bruno Lemerre also noted Yesterday, because American threats were unacceptable, and that if new tariffs were imposed, the Union and France were ready to respond.

On the other hand, investors are looking for the US economy to disclose preliminary data for the labor market with the release of the index of change in private sector jobs, which may reflect the acceleration of the pace of job creation to 137 thousand added jobs compared to 125 thousand added jobs in October, hours before From the disclosure of the monthly report of jobs except agricultural and unemployment rates in addition to the hourly rate for the month of November.

This comes before we witness the issuance of the final reading of the service provision institute index by Marquette about the United States, which may reflect the stability of the expansion at 51.6, little changed from the initial reading for November and 50.6 in October, and we would like to point out that the service provision Its importance is that the service sector in the United States accounts for more than two-thirds of GDP.

Up to the disclosure of the Institute of Service Supply index reading, which may show a shrinkage of expansion to 54.5 compared to 54.7 in October, and this comes before we witness the Deputy Governor of the Federal Reserve and member of the Federal Open Market Committee Randall Quarles testifying before the Financial Services Committee in the Council Representatives in the capital of the United States of America Washington.

Technical analysis

The euro against the dollar pair shows slight negative trades to approach the testing of the level of 1.1065, accompanied by the stochastic rid of the negative momentum and approaching the oversold areas in the sale, waiting for the price to be stimulated to resume the expected bullish direction for the next period, whose next targets are located at 1.1105 then 1.1180.

Therefore, we will maintain our bullish expectations unless the 1.1065 level is broken and stability below it again.

Expected trading range for today is between 1.1000 support and 1.1160 resistance.

Expected trend for today: bullish.