EURUSD dropped a bit after a short consolidation. The major currency pair retreated a little bit on Wednesday. The current quote for the instrument is 1.1297. The epidemiologic situation remains the same, but there are much fewer concerns, that’s for sure. The United Kingdom decided not to lock down the country for the Christmas holidays and Australia said that it was not even considering such an option.
As of now, the “greenback” is not very popular as a “safe haven” asset because the panic subsided and market sentiments reached stability. At the moment, market players are waiting for the final US GDP Q3 data. Financial markets are getting “thinner” every day as Christmas Eve is coming.
According to the forecasts, the US economy may expand by 2.1% in the third quarter, the same as the previous estimate. A weaker reading may put pressure on the American currency; however, the historic data says that the GDP statistics are revised upwards more often than downwards.
As it often happens in anticipation of the Christmas and New Year holidays, “thin” markets with fewer participants and low liquidity may restrain the major currency pair from any serious fluctuations provided that the GDP data matches the forecasts.
