Events to pay attention to today:
15:30 EET. USD – Consumer Price Index
17:00 EET. USD – Federal Reserve Chairman Jerome Powell Speaks
EURUSD:
The EUR/USD exchange rate broke a three-day losing streak, recovering to bounce back to just above 1.0350 as broad market flows reversed from the safe-haven greenback and investor sentiment generally recovered.Investors appeared to bristle at US President Donald Trump’s latest tariff threats, with Federal Reserve (Fed) Chairman Jerome Powell reiterating the Fed’s commitment to a data-driven approach in the face of the Trump administration’s erratic and inconsistent trade policies.
European data is expected to be scarce this week, with Germany’s final Harmonised Index of Consumer Prices for the year ending January due on Thursday, and EU gross domestic product data for the fourth quarter scheduled for release on Friday. These figures are not expected to have a significant impact as both are preliminary and European data is generally well forecast and estimated in advance.On Wednesday, US consumer price index (CPI) inflation will be the dominant indicator. US core CPI inflation is expected to remain at 2.9% y/y, while core CPI inflation is expected to decline to 3.1% from the previous reading of 3.2%.On Thursday, the US Producer Price Index (PPI) will be released, with core PPI inflation expected to ease slightly to 3.3% y/y from 3.5%.
Trading recommendation: SELL: 1.0350, SL 1.0400, TP 1.0290
Origin: FreshForex
