EURUSD intends to keep its positive momentum as investors are in anticipation of a new stimulus package in the USA.
The major currency pair is positively stable on Monday. The current quote for the instrument is 1.2180.
So, Joe Biden has taken over the White House and capital markets are in anticipation of additional stimulus packages that may be “injected” into the American economy. In this light, the USD is looking rather neutral because the packages imply more pluses than minuses. However, right now investors want to buy, that’s why their demand for the “safe” USD is pretty low. Hence, the decline in the “greenback”.
This new week will be quite interesting for market players. First of all, there will be another Fed meeting. The interest rate is no problem as it is expected to remain unchanged at 0-0.25% for quite a while but the regulator’s comments on the country’s economic outlook may get a bit more positive and optimistic. Secondly, the economic calendar features a lot of reports and data.
For example, the USA is scheduled to publish the Conference Board Consumer Confidence for January, the GDP for the fourth quarter of 2020, Personal Spending and Income for December, as well as the revised report on the Inflation Expectations from the University of Michigan for January.
Stable data will help the American currency to stay on the current levels. However, if the data turns out to be rather weak, investors may be forced to sell the USD.