14 February 2024, EUR/USD
Event to watch out for today:
12:00 EET EUR - Employment Change q/q анд GDP q/q
17:30 EET USD - EIA Crude Oil Stocks Change
EURUSD:
During the Asian session on Wednesday, EUR/USD remained steady near 1.0710 after dropping to three-month lows. Robust US inflation data for January supported the US dollar (USD), which reduced expectations of an imminent rate cut by the Federal Reserve (Fed) in March.
However, the Euro received some relief after the release of more favourable than expected Eurozone and German economic sentiment data on Tuesday. Investors are anticipating the release of preliminary Gross Domestic Product (GDP) data on Wednesday. Additionally, market participants will be paying close attention to the speech by Christine Lagarde, President of the European Central Bank (ECB), scheduled for Thursday.
There is growing speculation that the ECB may reduce interest rates at the beginning of the second quarter. Comments from ECB executive board member Piero Cipollone suggest that the ECB may not need to further curb demand to fight inflation. This implies that additional interest rate hikes may not be necessary.
There has been a significant shift in the market as the expectation of an unchanged interest rate next month has risen to 93%, a stark contrast to just a month ago. Investors are now considering the possibility of a rate cut by the Federal Reserve (Fed) in June.
The unexpected rise in US inflation in January has led Commerzbank analysts to reconsider the possibility of the Federal Reserve cutting interest rates. There is speculation among observers that the anticipated interest rate cut by the Fed, which was scheduled for May, may now be uncertain.
Trade recommendation: Trade mainly with Buy orders from the current price level
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