EUR/USD remains sideways around 1.1330
On Monday, January 24, at the end of the day, the euro rose by 0.17% to 1.1325. During the European session, the rate fell to 1.1291. Risky assets came under pressure amid geopolitical risks. Fear of conflict in Ukraine has crashed stocks around the world, propping up the dollar.
NATO countries announced the transfer of additional forces to Eastern Europe due to the crisis around Ukraine. In response, Russia launched a major exercise of the Russian fleet in the Baltic. The US State Department said on Sunday it was ordering family members of diplomats to leave Ukraine. The Pentagon has announced that it has put 8,500 troops on high alert.
The reversal occurred in the American session against the backdrop of a sharp rise in the euro/pound pair. The pair then accelerated to 1.1335 due to a rebound in US stocks. The S&P 500 rebounded after falling 4.5% Retail, energy and industrial companies showed growth. There was no news behind the growth. Buyers returned to the market after a deep correction.
Scheduled statistics (GMT +2):
At 11:00 Germany will publish the IFO business sentiment index for January.
At 13:00 UK will present data on the volume of orders in the industry from the CBI in January.
At 16:00, the US is to publish an index of prices for homes purchased through Fannie Mae and Freddie Mac for November.
At 17:00 in the US, the consumer sentiment index from The Conference Board for January will be released.
At the time of writing, the major currencies are trading in the red, except for the yen. The euro is worth 1.13005 (-0.18%). Futures on the SP500 fell 1.07%. The index is being corrected after yesterday's growth.
Market participants turn their attention to the meeting of the US Federal Reserve. The Central Bank will announce the decision on Wednesday at 22 Moscow time. The situation on the US stock market remains tense. If the correction in the indexes continues, then we can expect that risk appetite will increase for a while. Support is the level of 1.1290. If buyers fail to protect it, the 1.1220-1.1235 zone will appear on the horizon.
Summary: on Monday, the euro closed slightly lower. In the first half of the day, there was a flight from risky assets against the backdrop of a tense situation around Ukraine. The situation stabilized in the American session after the rebound of stock indices. Support is the level of 1.1290, which buyers need to protect before the US Federal Reserve meeting.