The Single Currency Plunged
The Euro/Dollar pair dropped 0.20% to 1.2365 today. Eurozone Industrial Change fell 1.0% in January, marking the largest decline in two years. German Factory Orders reduced 3.9%. Industrial Production dropped 0.1%. Nonetheless, German economy keeps pointing at improvement. The US is about to feature Consumer Price Index and Core Consumer Price Index, Mario Draghi will deliver a speech on European Central Bank’s conference in Frankfurt and Germany will announce Final Consumer Price Index.
New week, Fed is expected to execute a rate hike. At this point, fed fund futures are pricing in 89% chance. The prognosis still suggests 3 rate lifts in 2018, but basing on job data, there could be even 4 of them. In that case, the greenback will get a solid boost. US data is closely revised, in attempt to confirm this idea.