EUR/USD

EUR/USD weekly special report based On 1.00 Lot Calculation:

• EVENT (Wednesday, December 14 at 19:00 GMT): US FEDERAL RESERVE EXPECTED TO SLOW DOWN THE INTEREST RATE HIKE CYCLE IN DECEMBER. The Fed is expected to raise interest rates by 50 basis points to 4.50% in December, meaning a slowdown compared to November’s increase of 75 basis points to 4%. In early 2023 the Fed is expected to end the hike cycle, probably with a terminal rate of around 5%. Morgan Stanley expected the Fed to start cutting the rates already in Q4 of 2023, while Bank of America anticipates cuts will start in December 2023.
• EVENT (Thursday, December 15 at 13:15 GMT). EUROPEAN CENTRAL BANK TO KEEP RAISING INTEREST RATES TO KEEP UP WITH THE FED RATE INCREASES. The European Central bank will meet next on December 15, to raise interest rates from current 2.0% to 2.5%.
• THE EUROPEAN ECONOMY PERFORMED BETTER THAN PREVIOUSLY EXPECTED. Euro zone gross domestic product (GDP) grew by 0.2% quarter-on-quarter in the three months from July to September (Q3) for a 2.1% year-on-year increase. The relief has support the EUR currency which has outperformed the US dollar since late September of 2022.
• ANALYST OPINION: BANK OF AMERICA forecasts 1.10 in 2023. DEUTSCHE BANK forecasts 1.15 by late 2023.

EUR/USD, December 14, 2022
Current Price: 1.06200

Example of calculation base on weekly trend direction for 1.00 Lot¹

1. 1.00 lot is equivalent of 100,000 units

2. Calculations for exchange rate used as of 09:00 (GMT) 14/12/2022

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