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EU Authorities Failed to Agree on the Limit for Russian Gas Price

12/14/2022 1:18 PM

The EUR/USD pair is moving within a corrective trend at 1.0621.

Yesterday, the energy ministers of the EU countries could not agree on the maximum price for gas purchased from the Russian Federation, and consultations on this issue were postponed until next week. The European Commission has proposed a third, lower gas price cap of 2.360K dollars per 1.0K cubic meters for deliveries next month at the current price of 1.500K dollars. Still, according to Hungarian Foreign Minister Péter Szijjártó, after a long debate at the plenary meeting, no agreements were reached so that the discussion would continue in the framework of bilateral negotiations.

EU macroeconomic statistics almost completely coincided with forecasts: inflation in Germany slowed down by 0.5% in November, which led to a decrease in its growth to 10.0% YoY, the German economic sentiment index from the Center for European Economic Research (ZEW) with a forecast in December improved to –23.6 points from –36.7 points a month earlier, and the indicator for all countries in the region rose to –23.6 points from –38.7 points.

American publications did not live up to analysts' expectations: the consumer price index rose by 0.1% in November, which led to a slowdown in growth to 7.1% YoY from 7.7% earlier, although it was expected that the figure would drop to 7.3%, and the underlying value fell to 6.0% from 6.3% a month earlier. Thus, inflation in the country is falling more dynamically than experts expected, which may make adjustments to the US Federal Reserve's interest rate decision.

On the daily chart, the trading instrument continues corrective growth, confidently holding above the resistance line of the local ascending corridor.

Technical indicators maintain a stable buy signal: fast EMAs on the Alligator indicator widen the swing range upwards, and the AO oscillator histogram forms upward bars, rising in the buying zone.

Resistance levels: 1.0670, 1.0850. | Support levels: 1.0530, 1.0320.

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