Single Currency is Flat In Pre-Holiday Trade
The Euro/Dollar pair increased 0.07% to 1.2393. German GfK Consumer Climate rose to 10.9. Today, the US will present Q4 Final Gross Domestic Product and Pending Home Sale. Tomorrow, we’ll get German Preliminary Consumer Price Index, unemployment change, US jobless claims and UoM Consumer Sentiment.
German figures remain a slight concern for investors. Erkki Liikanen (Governing Council member and the governor of Finland's central bank) claimed that Eurozone’s underlying inflation might stay at low levels longer than anyone assumes. And the ECB should very careful in its policy decisions, Liikanen added. Even considering the fact that the Bank is trying to cope with the economic slack, inflation may no longer respond with increase, as it used to, he explains. Thus, the ECB is much likely to refrain from any policy tightening so far.
The market is still digesting the whole US-China tariffs situation. The US proposed a $60 billion tariffs on China goods. China, in her turn, responded with a list of retaliatory tariffs. The two countries are discussing the issue, and hopefully they find a proper solution.