EUR/USD (current price: 1.0552)
The Dollar has regained its relative strength yesterday in late trading, and it is drifting lower again this morning. The CB Consumer Confidence Index was much better than expected in January, coming in at a 16-year high with a reading of 114.8. The Chicago PMI was also a big positive surprise, while the prelim GDP print and the Goods Trade Balance both slightly missed expectations. The mostly bullish U.S. reports helped the Dollar in the second half of the session, and investors bought the USD following the speech of the President as well.
Our assessment: EUR/USD remains under pressure after a bearish week, as the Dollar continues to push higher against most of its peers. Strong support is still found at 1.05 and below that near 1.0350.
