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US President Biden’s stimulus plan at doubt, hurting the market’s mood.
German IFO survey missed expectations in January amid extended lockdowns.
EUR/USD is at risk of accelerating its decline once below the 1.2100 level.
The EUR/USD pair fell to 1.2115, as a change in the market’s sentiment fueled demand for the greenback. Investors´ mood suffered a setback after the release of poor German data, later exacerbated by discouraging headlines related to US stimulus. The German IFO survey showed that the Business Climate fell to 90.1 in January from a revised 92.2. The assessment of the current situation contracted to 89.2, while expectations fell to 91.1, all missing the market’s forecasts. Also, weekend news indicating that US President Joe Biden’s stimulus plan finds opposition within its own party further hurt the market’s mood.