Global macro overview for 29/12/2015:
The latest ECB predictions showed that the eurozone’s economy might grow 1.7% in 2016 after expanding 1.5% this year. The reason for that is an ongoing QE program that supports the region’s economies. Nevertheless, inflation has been below 1% for more than two years, whereas the ECB targets consumer prices of below but close to 2%. In the recent Financial Times pool, most economists do not expect the asset-purchase program to top 1.46 trillion euros in 2016. The ECB is likely to be under pressure to provide more support if the economic recovery remains sluggish and the inflation rate slows down. As Mario Draghi said at the last ECB meeting, that additional monetary stimulus is still on the table.
The EUR/USD pair is trading slowly in the tight trading range. The next support is seen at the level of 1.0869 and next resistance is seen at the level of 1.1011.
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