Events to watch out for today:
15:30 EET. USD – Consumer Price Index
EURUSD:
The Euro-dollar pair remains stable after recent gains in the previous session, trading around the 1.0300 mark during Asian hours on Wednesday. The pair gained support as market sentiment improved on recent reports that US President-elect Donald Trump’s economic team is considering a gradual increase in import tariffs, which boosted investor confidence, Bloomberg reported.
The U.S. dollar may strengthen again amid rising hawkish sentiment around the Federal Reserve’s (Fed) policy outlook for January. According to the CME FedWatch tool, 30-day fed funds futures indicate a higher probability of one Fed interest rate cut this year, which contrasts with the two cuts projected in the Fed’s latest dot plot from the Summary of Economic Projections (SEP).
EUR/USD may face additional downward pressure as European Central Bank (ECB) officials continue to reinforce market expectations for further policy easing due to the Eurozone’s weak economic outlook.
ECB policymaker and Bank of Finland Governor Olli Rehn said at a conference on Monday that he believes monetary policy will move beyond restrictive territory in the coming months, probably by “mid-summer.”
Trading recommendation: Watch the level of 1.0300, if consolidated above consider Buy positions, if rebounded consider Sell positions.
Origin: FreshForex
