Single Currency Gained On Positive CPI

Forex News

The single currency has mildly reinforced. The Euro/Dollar pair lifted 0.39% to trade at 1.2451. German Retail Sales reduced 1.9%, the largest fall in two years. Eurozone Consumer Price Index Estimate dropped to the half a year-minimum of 1.3%.

Considering the incoming data, Eurozone inflation remains at low levels, which favors the extension of ECB asset purchase program. The program is prolonged to September and Mario Draghi assured that rate hike will only be executed after it’s over, despite continuing speculations about policy tightening. Moreover, the President claimed it might be increased or extended even further.

The US is about to ADP Nonfarm Employment Change. Additionally, Fed will have a meeting, where members are expected to deliver some hints about a rate hike in March (the odds are at 70%), their economic outlook and the judgment of dollar’s continuing softness. Tomorrow’s data marks German and the Eurozone Manufacturing PMIs as well as US unemployment claims and the ISM Manufacturing PMI.