The euro / dollar pair returned to the upper border of the sideways trend
On Tuesday, January 11, by the end of the day, the euro rose in price against the US dollar by 0.36%, to 1.1367. The growth started in the Asian session and was stopped by the decline in the EUR / GBP cross during the European session. Before the speech of the head of the US Federal Reserve J. Powell, the EUR / USD pair dropped to 1.1285.
Investors were positive about the lack of surprises in Powell's speech to the Senate Banking Committee. He said he was aiming to prevent high inflation from taking root, and it would take two to four meetings to decide on the balance cut. The Fed chief allayed fears that the central bank would be overly aggressive in cutting its huge balance sheet.
The yield on US Treasury bonds fell 2.75%, to 1.734% per annum, the dollar index - to 95.57. The euro jumped to 1.1375.
Scheduled statistics (GMT +2):
At 12:00 in the eurozone will be released a report on industrial production for November.
At 15:30 the US is to publish the consumer price index for December.
At 16:15, Deputy Governor of the Bank of England John Cunliffe will deliver a speech.
At 17:30 the US Department of Energy will report on the change in oil reserves.
At the time of writing, the euro is worth 1.1371. Major currencies are trading in positive territory, except for the yen and franc. The demand for risky assets remains. The price is at the upper border of the side channel 1.1230-1.1385. An important report with data on consumer inflation in the US is coming out today. He could bring the euro back to 1.1300. After the publication, high volatility is expected for the major pairs. If buyers hold the level of 1.1350 until Thursday, then by the end of the week the price is expected to exit the 1.5-month range and test the level of 1.1450.
Summary: on Tuesday, the euro closed with growth. The euro jumped after the speech of the head of the US Federal Reserve J. Powell in the Senate Banking Committee. His speech and answers to questions lowered the yield on US bonds and the dollar index. The focus of traders is the US consumer inflation report for December 2020. The report is important for the Fed. High volatility is expected on the market after the publication.