At the beginning of the third January week, the main currency is still moving upwards; investors’ attitude to the USD didn’t get any better.
The EUR/USD pair is rising on Monday morning, thus continuing the uptrend. The current quote for the instrument is 1.2209.
So, the rally in the main currency pair didn’t stop. This morning, the instrument reached the highs of December 24th 2014. The main problem is that investors don’t believe in the USD. Well, they have a right not to.
Last week, there were several factors at once, which pushed the Euro upwards thanks to a new wave of anti‑Dollar sentiment. First of all, the ECB published its latest Monetary Policy Meeting Minutes, which didn’t contain anything dramatic, but investors took it as aggressive and supported the Euro. Later, the USA published the weekly Unemployment Claims report, which usually doesn’t attract much attention. However, this time the indicator increased, thus adding more pressure to the USD. Finally, last Friday the USA reported on the CPI, which added only 0.1% m/m in December, much worse than expected.
On the other side, the Euro was supported by some political news at the end of the last week. It became known that Merkel’s party was going to form a coalition with the Social Democratic Party of Germany. They had been slowly negotiating since September 2017. However, on its meeting on January 21st, the SPD is expected to announce this decision. Thanks to this, the governing party may regain the trust.
RoboForex Analytical Department