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| EUR/USD four-hour chart, source:FXDD.com |
The reports from Gjallarhorn are produced by a trader, not by an analyst. The reports are provided to the investors showing the trader's view on the market.
Gjallarhorn has no position in Forex market and just watch the market now.
The currency pair EUR/USD fluctuates in the plain Bollinger Bands since December. The currency pair has raised the bottoms below the parity and sidles before the book-closing month.
But the pair keeps the bullish trend and it seems to be valid to keep the bullish bias on the euro.
The U.S. consumer price index, CPI is released and the FOMC decides the benchmark interest rate in this week. The Europe benchmark rate is shown in the week and the currency-policy meeting by the European Central Bank, the Bank of England and the Swiss National Bank, respectively is hold, too.
The planned economy events made the market fluctuates quietly.
But the Japanese Yen dropped against the U.S. dollar as the U.S. bond yield rebounded.
The market participants expect the FOMC will hike the rate big-step not giant-step in the week as Jerome Powell, the Fed Chair hinted the rate-hike pace control. The CME Fedwatch anticipates the benchmark rate is hiked 50bp with 74.5-percent possibility.
It is reported, the market watches the final goal of the rate not how much hike because the final goal hints how long the tightening policy is effective.
The CPI in November released on Tuesday gained the interest. It may give the clues of the Fed's tightening policy. The market expects the CPI in November may rise 0.2 percent on the previous month and 7.3 percent on the last year.
Janet Yellen, the Secretary of the Treasury anticipated the U.S. inflation would be ease in the next year at the interview of the U.S. broadcasting.
But the ECB, European Central Bank and the BOE, Bank of England would be still hawkish at the meeting, the Yonhap Infomax reported on Tuesday. It reported, the market expected the big step or the giant step of the ECB and the big step of the BOE.
It is reported, the rate will be hiked 125bp and 150bp by the ECB and the BOE, respectively in the next year. The Fed is expected to hike 60 bp.
The senior analyst, Joe Ferry at Forex.com watched the weak dollar showed the market prospected the eased inflation. He said, the market listened Jerome Powell's comment of rate-hike pace control and it was reflected on the prices.
The time goes to end of the year. The traders begin to close the book and prepare the next year. We need to watch the market as book-closing view.
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