The major currency pair updated its four-month low and reached a new bottom.
EURUSD continues weakening on Thursday morning. The current quote for the instrument is 1.0870.
On one hand, the current newsflow is in favor of the “greenback”. It was reported today that new cases of coronavirus outbreak were revealed in China and investors who seemed to have forgotten about the virus were all over it again. On the other hand, the European statistics published yesterday turned out to be very disappointing and put additional pressure on the Euro.
The Industrial Production in the Euro Area lost 2.1% m/m in December after showing no changes in the previous month and against the expected reading of -1.8% m/m. the components of the report show that the capital goods output plunged by 4.0%, the production lost 1.7%, the consumer goods decreased by 1.3%, and energy lost 0.5%.
Probably, it was a result of sluggish demand. Manufacturers don’t want to increase the output and store goods and assets in warehouses, because of inactive consumption.
Today, there will be no significant numbers from the Euro Area. However, investors’ attention may switch to the European Commission Forecasts report, which is usually quite cautious.
Later in the afternoon, the USA is scheduled to report on the CPI in January, which is expected to show +0.2% m/m, the same as the month before. The Core CPI may add 0.2% m/m after being +0.1% m/m in the previous month. The stronger the numbers, the better for the USD.