EUR/USD: Trump’s move overshadows positive developments

EUR/USD may find it hard to recover if US fiscal stimulus is derailed. End-of-year flows, Brexit and data are in play ahead of Christmas while bears are ready to take over, Yohay Elam, an Analyst at FXStreet, reports.

Key quotes

“House Democrats – who crafted the relief package with Senate Republicans – seem to support higher payments, putting the GOP in a bind. If Trump vetos the bill, the bipartisan majority would override it and turn it into law. However, Trump could just hold the package hostage – not signing it nor vetoing it. That would cause a government shutdown early next week.”

“Tensions between Paris and London have eased  France is partially opening its sea border with the UK after the sudden shuttering on Sunday amid fears of the covid strain. The diffusion of tensions may also contribute to a Brexit deal – as the EU and the UK are getting closer on fisheries.” 

“Apart from politics, a busy data day awaits traders. US jobless claims have likely remained elevated while Personal Income and Personal Spending probably dropped in November. On the other hand, Durable Goods Orders, which represent investment, may have advanced last month.”

“Some resistance awaits at 1.22, the daily high, followed by 1.2250 and then by the 2020 peak of 1.2272. Support awaits at 1.2150, the daily low, followed by 1.2130 and 1.21.”