The Euro is facing downward pressure, trading below $1.1850, influenced by a stronger US Dollar and a risk-off market sentiment. Weak German economic data is further weighing on the currency, while investors await the Federal Reserve’s meeting minutes for insights into future monetary policy.
- Euro hovers around $1.185, near a four-year peak.
- ECB comfortable with Euro’s strength; inflation outlook is “good”.
- Bank of France Governor François Villeroy de Galhau will step down early.
- Eurozone industrial production fell 1.4% in December.
- US inflation slowed to 2.4% in January, potentially allowing the Fed to ease policy.
- EUR/USD stays below 1.1850 due to US Dollar strength and softer risk tone.
- Downbeat German ZEW sentiment readings weigh on the Euro.
- Risk-averse market atmosphere hinders the Euro’s rebound.
- US stock index futures are losing ground, supporting the US Dollar’s safe-haven appeal.
- Investors are closely watching ZEW Survey data for Germany and the Eurozone.
- The Federal Reserve will publish the minutes of the January policy meeting.
Overall, the current environment presents challenges for the Euro. Dollar strength, coupled with concerns about German economic sentiment, are acting as headwinds. The upcoming release of the Federal Reserve’s meeting minutes could provide further direction, while the ECB’s stance on inflation and the unexpected departure of a key policymaker add further complexity.