EUR renewed April peaks. Overview for 13.01.2023

13 января 2023 - Fx4News

On Friday, the market major sticks to its local h8ghs. The current quote is 1.0840.

The main event of the previous trading session was the publication of the US inflation reports. This was beautiful.

The CPI in December dropped to 6.5% y/y as expected from 7.1% previously. Monthly speaking, inflation decreased by 0.1% after an increase by 0.1% in November.

Base inflation dropped to 5.7% y/y from 6.0% y/y, as expected. However, monthly speaking, base CPI grew by 0.3%.

The USD dropped to the low of April 2022 against the EUR. Curiously enough, the market did not run to the strategy "buy on rumors, sell on facts"; instead, it went by the trend.

It seems that the weakness of the USD confirms the expectations of softer Fed's policy.