The euro / dollar hung above the support of 1.1385
On Monday, January 17, trading on the euro/dollar pair ended with a slight decrease. The euro fell 0.08% to 1.1407. Trades on the currency market were in the range of 1.1390-1.1435. The activity of traders was low due to the holiday in the US. On the occasion of the national holiday (Martin Luther King Day). The bond market and stock markets in the US did not work.
Scheduled statistics (GMT +2):
At 09:00 in the UK, data will be released: the average wage and unemployment rate for November, applications for unemployment benefits for December.
At 12:00, the eurozone will publish an index of economic sentiment from the ZEW for January. January ZEW business sentiment index to be released in Germany at 13:00
At 15:15 Canada will present data on the construction of houses in December.
At 15:30, the New York Fed activity index for January will be released in the US.
At 17:00, the US is to publish the NAHB Housing Market Value Index for January.
At 17:30 Australia will publish the index of leading indicators for November.
During the Asian session, major currencies turned red on the background of falling futures for US stock indices, as well as rising yields on US government bonds. Yields on 10-year and 5-year US Treasuries hit new two-year highs. It is rising on expectations of a rate hike by the US Federal Reserve in March. Due to differences in the monetary policy of the European Central Bank and the Fed, the balance of risks for the euro/dollar pair is still tilted to the downside
Euro costs 1.1400. The price is near the support of 1.1385, which was resistance for a month and a half. If buyers lose it again, they will have to retreat to the level of 1.1285.
The focus is on ZEW sentiment for Germany and the Eurozone for January. They will be critical to setting direction before the end of the week.
In cross-pairs with the euro, the picture is ambiguous, so multidirectional fluctuations are likely in the main pair before the American session. The dynamics of futures for US indices and the yield of 10-year bonds are important keys for the euro/dollar pair. Euro is expected to strengthen slightly to 1.1420.
Summary: on Monday, the euro closed slightly in the red. Due to the holiday in the US, the activity of traders in the market was low. The price was trading in a limited range. On Tuesday, the euro/dollar pair fell to 1.1384 amid falling futures for stock indices and rising yields on 10-year bonds. A moderate recovery to 1.1420 is expected.