This year Christmas seems to be the most calm of all in terms of trading options contracts on euro since the euro came into existence. At least, this is what traders focusing on this trading instrument say. As a rule, ahead of holidays the market sees shrinking liquidity, which paves the way for a spike in prices.
However, this time the holiday vacations are likely to be calm, most market participants express no concerns. On Tuesday, the weekly EUR/USD volatility sagged to 4.73%, posting a record low since August 2014. According to the statistics, closing below 5% would be a record for this time of year since the euro emerged. As for key factors that could come into play, the Senate passed the final version of the Republican tax bill, and it may well have its impact on the euro. In addition, there is a number of US economic reports scheduled for release in the run up to Christmas, including GDP, durable goods orders as well as consumer income and spending. What is more, the inflation rate report is due, which is crucial for the Fed. So, there is a chance that some of these reports will put an end to the quiescent mode and enliven the market.
