EUR/USD Recovers After Two-Year Low
EUR/USD continued to explore the bearish side of the chart on Monday (14/1), dropping to the 1.0200 level for the first time since late 2022, carving a new 26-month low before staging a half-hearted recovery later in the day.
European economic data remained marginal throughout the trading week. The European Central Bank (ECB) is set to continue lowering interest rates, further widening the euro’s interest rate differential against the US dollar. Final pan-ERU and German inflation figures due midweek are not expected to deviate significantly from the preliminary figures.
The US Producer Price Index (PPI) figure kicks off the week’s key data on Tuesday, which is expected to rise to 3.7% YoY in December compared to 3.4% previously. US CPI inflation, also due on Wednesday, is expected to rise to 2.8% from 2.7%, and US Retail Sales activity is due on Thursday.
Source: FXStreet