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The ECB expressed concerns about the exchange rate, will analyse the impact of policies’ imbalances.
US Consumer Confidence improved modestly in January to 89.3.
EUR/USD is neutral in the near-term, faces strong resistance in the 1.2180 region.
A better market sent EUR/USD to a daily high of 1.2175. However, investors remain cautious ahead of first-tier events in the US to be released later in the week, and doubts about further US stimulus, as President Joe Biden’s plan faces opposition in Congress. Also, concerns gyrate around delays in vaccines’ delivery in Europe. The market mood suffered a setback mid-US afternoon, after the ECB expressed concerns about the exchange rate, and would study the impact of ECB vs Fed policy on it.
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EUR/USD Weekly Forecast: Could US 4Q GDP and the Fed revive dollar’s demand?ANALYSIS |
1/22/2021 3:29:26 PM GMT
The US Federal Reserve will announce its monetary policy after an uneventful ECB meeting.
Germany and the US will publish preliminary estimates of Q4 growth next week.
EUR/USD remains bullish in the long-run, investors eyes 1.2413.
It was a good week for the shared currency, as it bounced back against its American rival. The EUR/USD pair fell short of recovering the ground lost in the previous weeks, anyway moving towards the two-year high of 1.2349.
A scarce macroeconomic calendar, uneventful central banks and coronavirus-related concerns offset hopes that vaccine immunization will soon put an end to the pandemic and let economies return to the growth path.
1/22/2021 3:42:53 PM GMT
Australian macroeconomic data indicated economic progress at the end of 2020.
US growth data and the Federal Reserve monetary policy decision in the spotlight.
AUD/USD consolidating near multi-year highs, a corrective slide is foreseen below 0.7640.
The AUD/USD pair has made little progress this week, ending it around the 0.7700 figure as investors struggled to maintain the optimism alive. Upbeat Chinese Gross Domestic Product released on Monday -the country reported the economy grew at an annualized rate of 6.5% in the last quarter of 2020- provided some support to the positive sentiment, but didn’t last. As the week developed, more social restrictions for longer took their toll on currencies.
1/22/2021 3:44:12 PM GMT | By FXStreet Team
The EUR/USD pair heads into the weekly close trading at its highest for the week, a handful of pips below the 1.2200 figure. The long-term trend is bullish and investors eyes 1.2413, April 2018 monthly high, FXStreet’s Chief Analyst Valeria Bednarik reports.
Key quotes
“The US Federal Reserve is having a monetary policy meeting next Wednesday. The central bank is expected to maintain its monetary policy unchanged. The US will publish December Durable Goods Orders earlier that day, seen posting a modest 0.9% advance. On Thursday, the country will release the preliminary estimate of the Q4 Gross Domestic Product, foreseen at 2.8% QoQ from 3.7% in the previous quarter.”
1/22/2021 3:49:18 PM GMT | By FXStreet Team
The AUD/USD pair has made little progress this week, ending it around the 0.7700 figure as investors struggled to maintain the optimism alive. In the view of FXStreet’s Chief Analyst Valeria Bednarik, bulls may finally give up some as a corrective slide is foreseen below 0.7640.
Key quotes
“Australia will start the week with a holiday but will provide relevant data later into the week. The country will publish the December Westpac Leading Index and Q4 inflation figures on Wednesday, alongside NAB’s Business Confidence.”
“The US will offer December Durable Goods Orders, expected to have gained 0.9%, and the first estimate of the Q4 Gross Domestic Product, foreseen at 2.8% QoQ from 3.7% in the previous quarter. On Wednesday, the US Federal Reserve will announce its latest decision on monetary policy, although the market anticipates no changes to the current policy.”