On Friday morning, the major currency pair remains under pressure; the coronavirus driver is valid again.
EURUSD is updating its three-year low almost every day. The current quote for the instrument is 1.0831.
The key factor that is against the European currency these days is investors’ avoiding risks relating to news about new spots of the virus outbreak. China started implementing a new method of identifying the infected, which significantly increased the number of diseased and deceased. For market players, who already seemed to have calmed down, it was a signal to switch to “safe haven” assets.
In this light, investors didn’t pay much attention to the unimpressive statistics from the USA, which would count against “greenback” in normal circumstances. The Consumer Price Index showed only +0.1% m/m in January against the expected reading of +0.2% m/m. On YoY, the indicator was 2.5%. the Core CPI added 0.2% m/m, the same as expected, after adding 0.1% m/m in December.
The components of the report show that the largest increase was in the cost of food and medical care services, although these increases more than offset a decrease in the gasoline index, which fell 1.6%, and energy, declined 0.7%.
It means that in the nearest future the prices will likely grow slower than expected and that’s not a good signal for the Fed.
There will be a lot of numbers today, both from the USA (Retail Sales, Industrial Production, Consumer Sentiment, Inflation Expectations) and the Euro Area (Trade Balance, GDP), which will surely provide some reasons for active movements in EURUSD.