EUR/USD inches higher to near 1.0750, Eurozone Retail Sales eyed


  • EUR/USD faced trouble after weaker EU PPI data on Monday.
  • The improved US ISM Services data supported the US Dollar.
  • Fed’s Powell emphasized monitoring inflation's sustained trajectory toward the 2% core target.

EUR/USD hovers near 1.0750 during the Asian session on Tuesday after witnessing a plunge in the previous session. The EUR/USD pair tumbled on hawkish remarks from the US Federal Reserve’s (Fed) Chair Jerome Powell, coupled with the improved US ISM Services data.

The US ISM Services PMI recorded a 53.4 reading in January, exceeding the expected figure of 52.0 and the previous month's 50.5. Additionally, the ISM Services Employment Index rose to 50.5 from the previous reading of 43.8.

Federal Reserve Chairman Jerome Powell emphasized the significance of closely monitoring inflation's sustained trajectory toward the 2% core target. This stance resulted in an uptick in US Treasury yields, exerting downward pressure on the EUR/USD pair. The market response reflected increased confidence in the strength of the US Dollar amid indications of a less accommodative monetary policy stance from the Federal Reserve.

Additionally, the Euro (EUR) faced additional downward pressure following the release of weaker Europe’s Producer Price Index (PPI) data on Monday. The European Union (EU) is contending with a disinflationary trend, potentially prompting the European Central Bank (ECB) to consider easing its policy. The Organisation for Economic Co-operation and Development (OECD) foresees inflation across Europe remaining above the ECB's 2% target until sometime after 2025.

In December, the annual PPI recorded a decline of 10.6%, surpassing the anticipated decrease of 10.5% and the previous figure of 8.8%. While the monthly index showed a fall of 0.8% as expected. The previous decline was 0.3%.

Investors are attentively monitoring speeches from Federal Reserve officials for further insights into potential monetary policy adjustments. Conversely, Tuesday's release of December's Eurozone Retail Sales data is anticipated to provide additional information on the economic conditions within the Eurozone.

EUR/USD: additional important levels

Overview
Today last price 1.0746
Today Daily Change 0.0003
Today Daily Change % 0.03
Today daily open 1.0743
 
Trends
Daily SMA20 1.0874
Daily SMA50 1.0907
Daily SMA100 1.0783
Daily SMA200 1.0838
 
Levels
Previous Daily High 1.0788
Previous Daily Low 1.0723
Previous Weekly High 1.0898
Previous Weekly Low 1.078
Previous Monthly High 1.1046
Previous Monthly Low 1.0795
Daily Fibonacci 38.2% 1.0748
Daily Fibonacci 61.8% 1.0763
Daily Pivot Point S1 1.0715
Daily Pivot Point S2 1.0687
Daily Pivot Point S3 1.0651
Daily Pivot Point R1 1.0779
Daily Pivot Point R2 1.0815
Daily Pivot Point R3 1.0843

 

 

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