Single Currency Slightly Reduced

Forex News

The single currency has mildly softened. Euro/Dollar pair dropped 0.14% to 1.2313. Recently, euro weakened as German PMI declined to 60.3 and Eurozone PMI fell to 58.5. ZEW economic sentiment disappointed investors as well.

German Q4 Final Gross Domestic Product fell to 0.6%. Eurozone Final Consumer Price Index marked 1.3% and Final Core Consumer Price Index indicated 1.0%. Today, Fed officials William Dudley, Loretta Mester and John Williams will deliver their speeches about further policy guidelines and economic outlook.

Fed released its January meeting protocol, which indicated that members improved their outlook for growth, labor market and inflation, as expected. The possibility of a March rate hike has been reinforced as well. Overall, members assume there will be 3 rate lifts this year. But, investors are convinced there will be 4 or even 5 of them, which puts market under the pressure.