EUR/USD was certainly pressured lower by the Fed hike. In the week of Christmas, the calendar is relatively light, but there are still some interesting developments that could rock the euro on low liquidity. Here is an outlook for the highlights of this week and an updated technical analysis for EUR/USD.
German data was relatively mixed with one survey, ZEW, beating expectations while the other, IFO came a bit below them. Also PMIs didn’t change the balance and neither did Draghi: his attempts to do damage control have very limited success. However, Draghi probably got what he wished for from the Fed: the historic rate hike was not dovish and consisted of intention to raise more than expected in 2016.
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