- EUR/USD withdraws further from over a month’s peak among the reborn USD demand.
- Trump’s tariff threats and the reflection of American bond yields are a good elevator for a zloty.
- Busters for moving aggressive power by EBC contribute to the intensity decline.
The EUR/USD pair extends a diminutive withdrawal from the region 1.0530-1.0535, which is its highest level from December 17 and attracts demanding sales during the Asian session on Tuesday. Spot prices are currently the subject of 1.0430, falling by over 0.50% during the day and seem to be prone to weakening further among the forceful acceptance of demand to the US dollar (USD).
Investors remain concerned that US President Donald Trump’s commercial tariffs would enliven inflationary concerns, causing a slight recovery in terms of US tax bonds. This, in turn, helps the USD (DXY) index, which follows the green earnings against the currency basket to make a solid reflection from over a month low affected on Monday and exerts pressure on EUR/USD couples.
Meanwhile, Trump at the beginning of this month threatened to apply tariffs to Mexico, Canada, China and the European Union (EU). This, along with the growing plants to reduce the rate by the European Central Bank (ECB) on Thursday, undermines the common currency and contributes to the decrease in the EUR/USD pair. Bears, however, can refrain from setting aggressive plants from the key risk of central bank events.
The US Federal Reserve (FED) is to announce its political decision at the end of the two -day meeting on Wednesday, followed by the ECB meeting on Thursday. The latest monetary policy updates should ensure a fresh directional impulse for the EUR/USD pair. In the meantime, traders on Tuesday will accept tips on American Macro data to get tiny -term possibilities later during the US session.
In the American economic document, it contains exemption of orders for fixed goods, a conference consumer trust indicator and a Richmond production indicator. Nevertheless, this fundamental background makes it reasonably wait for a forceful observing sales before confirmation that the recent recovery of EUR/USD pair from over a two -year trough.
Economic indicator
EBC rate in the deposit plant
One of European Central BankThree key interest rates, the rate in the deposit plant, are the rate in which banks earn interest when they are submitting funds with EBC. It is announced by the European Central Bank at each of the eight planned annual meetings.
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Next edition: Thu January 30 2025 13:15
Frequency: Irregular
Agreement: 2.75%
Previous: 3%
Source: European Central Bank