On Tuesday morning, the major currency pair is keeping negative momentum and retreating.
EURUSD continues trading downwards on Tuesday morning. The current quote for the instrument is 1.1328.
Market players believe that the trade talks between the USA and China are about to finish successfully, that’s why the American currency is looking pretty attractive again. This issue is very important, because there might be not any additional import duties on Chinese goods after the deal is signed. Apart from this, 10-year bond profitability went up yesterday, thus providing more support to the USD.
There will be a lot of numbers in today’s macroeconomic calendar. In the afternoon, there will be Services PMI reports from Germany, France, Italy, Spain, and the Euro Area in general. In almost all cases, the indicator is expected to match the previous readings. The French and Italian reports might attract more attention than the others, because the indicator value here is below the psychologically-crucial level of 50 points, which separates decline from growth. However, these statistics are rather minor, that’s’ why one should expect any serious movements in EURUSD.
The Euro Area is scheduled to report on the Retail Sales in January, which is expected to recover by 1.3% m/m after losing 1.6% m/m in December. Taking into account stresses in the retail sector in Europe, it will be interesting to check the components of the report.
In the evening, the USA will publish the New Home Sales, which is expected to be 597K in December after being 657K the month before. Despite negative expectations, it’s okay: this indicator always declines at the end of the year. If the actual reading matches the expected one, EURUSD will remain neutral.
Orgin: RoboForex
