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    EUR/USD recovers some lost ground above 1.0840, focus on German, Eurozone GDP data

    Source Fxstreet
    January 30, 2024 01:07
    • EUR/USD rebounds to 1.0841 on the softer US Dollar. 
    • ECB’s Kazimir said the central bank won’t rush into cutting rates to avoid undoing progress on inflation.
    • The Federal Reserve (Fed) is likely to keep its key interest rates steady for the fourth time in a row. 
    • The German and Eurozone Q4 Gross Domestic Product (GDP) reports are due on Tuesday. 

    The EUR/USD pair recovers some lost ground below the mid-1.0800s during the early Asian trading hours on Tuesday. The rebound of the major pair is driven by the modest decline of the US dollar (USD) and lower US Treasury bond yields. Investors await the advanced Q4 Gross Domestic Product (GDP) from Germany and the Eurozone ahead of the Federal Open Market Committee (FOMC) meeting on Wednesday. The major pair currently trades near 1.0841, adding 0.09% on the day.

    The European Central Bank (ECB) Governing Council member Peter Kazimir said that the central bank won’t rush into cutting interest rates to avoid undoing progress on inflation. Kazimir added that it would be risky to act rapidly in response to short-term surprises without having more clarity about the medium term. Additionally, Bank of France governor François Villeroy de Galhau stated that the ECB will cut our rates this year and that everything will be open at the next meeting on March 7.

    The advanced Q4 Eurozone Gross Domestic Product (GDP) is due on Tuesday, which is estimated to contract by 0.1% QoQ and remain steady on an annual basis. If the report shows a weaker-than-expected outcome, this could exert some selling pressure on the Euro (EUR) and act as a headwind for the EUR/USD pair. 

    Across the pond, the Federal Reserve (Fed) is likely to keep its key interest rates steady for the fourth time in a row. Nonetheless, there is a chance that the Fed might lower the rates by 25 basis points (bps) in March. According to the CME FedWatch Tool, futures traders have priced in a 45.9% likelihood that the Fed would cut interest rates for the first time this cycle in the March meeting.

    Looking ahead, the German and Eurozone GDP growth numbers for Q4 will be released on Tuesday. On the US docket, US JOLTS Job Openings and the Consumer Confidence gauge by the Conference Board will be released. The attention will shift to the FOMC meeting on Wednesday.

     

     

    Disclaimer: For information purposes only. Past performance is not indicative of future results.
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    EUR/USD oscillates around 200-day SMA amid mixed fundamental cuesThe EUR/USD pair reverses an intraday dip to the 1.0800 neighbourhood and touches a fresh daily peak during the early European session on Monday.
    Source  Fxstreet
    The EUR/USD pair reverses an intraday dip to the 1.0800 neighbourhood and touches a fresh daily peak during the early European session on Monday.
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    GBP/USD edges lower to 1.2660 amid a steady US Dollar, hawkish Fed officialsGBP/USD breaks its four-day winning streak and trades slightly lower around 1.2660 during the Asian session on Monday.
    Source  Fxstreet
    GBP/USD breaks its four-day winning streak and trades slightly lower around 1.2660 during the Asian session on Monday.
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    USD/CHF holds steady around 0.8800, above weekly low touched on ThursdayThe USD/CHF pair ticks higher during the Asian session on Friday, albeit lacks bullish conviction and remains confined within the previous day's broader range.
    Source  Fxstreet
    The USD/CHF pair ticks higher during the Asian session on Friday, albeit lacks bullish conviction and remains confined within the previous day's broader range.
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