Euro Steadies Against US Dollar In Anticipation of German Inflation Report
The euro remains stable against the US dollar. The EUR/USD pair rose by 0.10% today and is trading at 1.2330. The volatility of the euro against the US dollar remains a problem for the ECB. The euro rose by 2.8% since the beginning of the year. The state of the pair may change today as markets await the speech of the new chairman of the Fed, Jerome Powell, before the House Banking Committee.
Powell's Congressional testimony will his first public appearance since being sworn in as chairman earlier this month. Traders will watch closely to see whether the new chief will continue on the gradual monetary rate path pursued by his predecessor Janet Yellen, or whether he will take a more hawkish approach.
Eurozone sentiment fell as expected for the second month in a row in February from a multi-year high, as confidence sapped from every sector except services. European Commission survey data showed economic sentiment in the Eurozone eased in February to 114.1 points from a revised 114.9 in January, having hit a 17-year high of 115.3 in December. Consumer sentiment had also fallen, to 0.1 from 1.4 points. Business climate indicator, which points to the phase of the business cycle, slipped to 1.48 in February, from 1.56 in January, and in line with the market expectation of 1.47.
Germany will release Preliminary CPI today, and the indicator is expected to show a growth of 0.5%. The US will publish data on durable goods. Core Durable Goods Orders are forecast to fall to 0.4%, and Durable Goods Orders are expected to decline 2.4%.