Connect with us

Plato Vertical Search

Blockchain

Euro slips below 1.13 but recovers

The euro lost ground earlier on Thursday but has recovered most of these losses. EUR/USD is currently trading at 1.1337, down 0.08% on the day. Risk appetite boosts euro With a very light economic calendar this week, the markets are being driven by sentiment, which essentially means the latest Omicron headlines. The markets remain fairly […]

FacebookTwitterEmail

The euro lost ground earlier on Thursday but has recovered most of these losses. EUR/USD is currently trading at 1.1337, down 0.08% on the day.

Risk appetite boosts euro

With a very light economic calendar this week, the markets are being driven by sentiment, which essentially means the latest Omicron headlines. The markets remain fairly upbeat, despite the explosion in Omicron infections. France and the US posted all-time record highs for the number of new cases, but that hasn’t made a dint in investor sentiment. The equity markets are humming, with the S&P 500 and Dow Jones posting record highs, while the safe-haven dollar is broadly lower as risk tolerance remains elevated. This upbeat mood was reinforced by a larger than expected decline in US crude oil inventories and an unemployment claims release of 198 thousand, which was better than expected. This suggests that the US economy continues to perform well, even with the newest Covid wave.

ECB President Christine Lagarde has been rather dismissive of inflationary pressures, even with eurozone inflation hitting a record 4.9% y/y in November. The ECB this month projected that inflation will fall to 1.8% after 2022, but this view is by no means unanimous. In an interview published on Thursday, ECB member Klaas Knot said that eurozone CPI could well remain above the bank’s 2% target for years and that the bank’s forecast “could prove to be too rosy”. The ECB has no plans to change its accommodative policy, and plans to continue QE even while winding up its emergency pandemic programme (PEPP) in March 2022.

Spain’s Flash CPI for December is estimated at 6.7%, much higher than the 5.5% gain in November. If eurozone CPI releases in early January also show an uptick, we could see additional ECB members echo Knot’s view that inflation could stay above the bank’s 2% target in the coming years.

.

 EUR/USD Technical

  • EUR/USD has support at 1.1255. Below, there is support at 1.1190
  • There is resistance at 1.1364 and 1.1408

Euro slips below 1.13 but recovers Blockchain CoinGenius Hosts Virtual Crypto Event The Road To Mass Adoption

Web3 Reimagined. Data Intelligence Amplified. Click here to access.

Source: https://www.marketpulse.com/20211230/euro-slips-below-1-13-but-recover/

Advertisement. Scroll to continue reading.
Euro slips below 1.13 but recovers Blockchain CoinGenius Hosts Virtual Crypto Event The Road To Mass Adoption
Advertisement

Latest Blockchain Streams

Blockchain

Bullish GRT price prediction is $0.7922 to $1.67. GRT price might also reach $2 soon. GRT bearish market price prediction The post has appeared...

Blockchain

For years now, some investors have preferred to hold their wealth in cryptocurrencies like bitcoin and ethereum as opposed to cash. As cryptocurrencies become...

Blockchain

QANplatform, a quantum-resistant Layer 1 hybrid blockchain platform that enables the creation of quantum-resistant innovations in any programming language has launched its TestNet following...

Blockchain

Seattle, United States, 18th January, 2022, Chainwire Stably, a US venture-backed stablecoin and asset tokenization infrastructure provider, announced it has The post has appeared...