EUR/USD Moves Little Higher During Quiet Christmas Trading

EUR/USD rose a little today, extending its rally for the third straight day. The gains were small, though, as volumes were low during quiet trading ahead of Christmas. While the dollar paused its rally for now, analysts believe that it was just a sign of end-year profit taking and the currency should resume its upward movement at the start of the next year. Today’s session was light on economic news from the United States, but those that were released turned out to be rather good.
New home sales rose to the seasonally adjusted annual rate of 592k in November from 563k in October. The analysts’ consensus estimate was more modest, pointing at 575k as a possible value. (Event A on the chart.)
Michigan Sentiment Index climbed from 93.8 in November to 98.2 in December according the revised estimate. The reading was slightly above the preliminary figure of 98.0 and matched specialists’ predictions exactly. (Event A on the chart.)

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