EUR/USD 1.16558
0.187%
Gold 4569.24
1.368%
Oil 59.084
0.795%
USD/JPY 158.038
0.101%
GBP/USD 1.34230
0.127%
GBP/JPY 212.140
0.229%
Browse More
  • English
  • 简体中文
  • 繁體中文
  • Tiếng Việt
  • ไทย
  • Indonesia
Subscribe
Real-time News
The Hang Seng Tech Index surged more than 2% in the short term, with AI application stocks rising across the board. The Hang Seng Index is currently up 0.76%.U.S. State Department spokesperson: U.S. Secretary of State Marco Rubio spoke with Mexican Foreign Minister Juan Ramon de la Fuente on the 11th.On January 12th, Semafor reported that an external organization closely associated with the Trump administration plans to run ads during the 2026 Super Bowl to promote the "Trump Account." This is a new type of individual retirement account for U.S. children born between January 1, 2025, and December 31, 2028, with a one-time federal government injection of $1,000 in seed funding. Last week, in an interview with a Midwestern local radio station, when asked why the "Trump Account" hadnt received widespread media coverage since its announcement last year, Treasury Secretary Bessant responded, "Itll be getting a lot of attention soon. All viewers, listen up: after the national anthem (a traditional segment before the Super Bowl officially begins), tune in to the Super Bowl, were going to have a massive launch." NBC, which will broadcast the 2026 Super Bowl, and the U.S. Treasury Department declined to comment.On January 12th, following the recent 2026 XPeng Global New Product Launch, XPeng Motors Chairman and CEO He Xiaopeng stated in an interview that XPeng Motors core product lines, including smart cars, Robotaxi (driverless taxis), robots, and low-altitude flying cars, will go global. From 2026 to 2030, the company will fully promote globalization. He Xiaopeng explained that in terms of globalization, XPeng Motors had already entered 60 countries and regions by 2025, and will enter even more countries and regions in 2026. "We will further deepen our local R&D and local manufacturing, bringing more global models to both left-hand drive and right-hand drive markets."January 12 - The State Council Information Office will hold a press conference at 10:00 AM on Wednesday, January 14, 2026, where Wang Jun, Deputy Director of the General Administration of Customs, will introduce the import and export situation for the whole of 2025 and answer questions from reporters.

EUR/USD falls to 1.0850 as German/US Data escalates the ECB-Fed Conflict

Alina Haynes

Feb 01, 2023 15:32

EUR:USD.png

 

Mid-1.0800s intraday support is reestablished for EUR/USD on Wednesday morning, reversing Tuesday's rebound gains. This demonstrates the market's uneasiness ahead of the Federal Open Market Committee (FOMC) meeting. German economic risks to the EU, as well as mixed data from the United States and fears that Fed Chairman Jerome Powell will yet support hawks, might potentially weigh on the currency.

 

The Eurozone's Gross Domestic Product (GDP) for the fourth quarter (Q4) climbed 0.1% quarter-over-quarter (QoQ) on Tuesday, compared to 0.0% expected and 0.3% earlier. The year-over-year statistics were also good for the bloc, topping the market consensus of 1.8% to achieve 1.9%, compared to 2.3% previously. Nevertheless, German Retail Sales decreased 5.3% month-over-month in December, which was substantially worse than expected. Earlier in the week, the German GDP likewise disappointed EUR/USD pair speculators.

 

In contrast, the US Employment Cost Index (ECI) for the fourth quarter declined to 1.0% compared to market estimates of 1.1% and previous readings of 1.2%. In addition, the Conference Board (CB) Consumer Confidence index dropped from 108.3 to 107.10 in January. The US Chicago Purchasing Managers' Index (PMI) for January, which rose to 44.3 vs 41 expected and 44.9 previous readings, does not merit substantial attention.

 

Aside from the United States, higher profit reports from industry leaders including General Motors, Exxon, and McDonald's alleviated the economic downturn and lifted Wall Street indices. Nevertheless, the Dow Jones Industrial Average (DJIA), the S&P 500, and the Nasdaq all reported daily gains of greater than 1.0% on the previous trading day. In contrast, the yields on 10-year US Treasury notes reversed a three-day rise and returned to 3.51 percent, while their two-year equivalents plummeted to 4.20 percent.

 

It should be noted that JP Morgan's annual survey uncovered a reduction in inflation fears and a rise in recession fears, which tests the risk profile in the middle of pre-Fed anxiety. In spite of this, the world's largest rating agency, Fitch, forecasts that the US Consumer Price Index (CPI) would moderate to the mid-3.0% band in 2023 and the high-2.0% range in 2024, putting pressure on EUR/USD bears.

 

As a result of these variables, S&P 500 Futures see minor losses, while US Treasury bond rates remain sluggish and halt their slide from the previous day. This allows the EUR/USD pair to prepare for the Federal Reserve's dovish rate hike of 0.25 percentage points.

 

While the 0.25 basis point Fed rate hike is virtually expected and has been priced in, EUR/USD traders will also pay close attention to January activity data and Jerome Powell's ability to defend aggressive rate hikes.


Suggestion