On Tuesday, the primary currency pair appears neutral. The current EURUSD quote is 1.0965.
The market has finally found the equilibrium point after a notably volatile first week of January. During that week, investors urgently reassessed their forecasts about the future actions of the US Federal Reserve. Statistics on the employment market for December came out strong, making the market less optimistic about the upcoming six interest rate decreases and the potential initial action in March.
Expectations have now shifted to a later timeframe, such as April, May, or even June. Much will depend on the upcoming statistics later this week, specifically the inflation report for December. The CPI is projected to have grown by 0.1% m/m, following a similar increase in November. Core prices may have remained unchanged from month to month.