The USD has taken the upper hand. Overview for 14.01.2021

14.01.2021

A rebound in EURUSD was pretty short indeed; the USD is in demand again.

After a short correction, the major currency pair is back to falling. The current quote for the instrument is 1.2145.

The CPI and the Core CPI in America revived a little bit in December, just as expected. The indicators showed 0.4% m/m and 0.1% m/m respectively after being both 0.2% m/m in the previous month. Most likely, prices went up in December due to an increase in the petrol price. 

Energies continue getting more expensive in January, that’s why another increase in the CPI may be expected later.  

However, this slight surge in inflation shouldn’t have any influence on the White House’s plans to implement the stimulus package. Of course, there are risks of accelerating inflation but they are quite small because the Core CPI didn’t change.

Expectations of the US economic recovery with a lot of help from the American government and the Fed were in favor of the USD despite lockdowns in Europe and a high burden of the COVID-19.  

Later today, the European Central Bank is scheduled to publish the Monetary Policy Meeting Accounts but it is very unlikely to contain anything that market players didn’t know before. In the evening, the USA will publish a weekly Unemployment Claims report: the indicator is expected to reduce a little bit and it might be a good signal.

Attention!

Forecasts presented in this section only reflect the author’s private opinion and should not be considered as guidance for trading. RoboForex bears no responsibility for trading results based on trading recommendations described in these analytical reviews.