- EUR/USD could sell off further
EUROZONE GDP RECAP
EU GDP Q4 Y/Y: -5.1% vs Exp. -5.4% (Prior -4.3%) – Q/Q: -0.7% vs Exp. -1% (Prior 12.5%)
Eurozone GDP modestly beat forecasts. However, the Euro’s reaction was muted. It is worth remembering that the data is backward looking and that with the majority of the Eurozone under lockdown measures currently the downside risks looks likely to persist throughout Q1. That said the data highlights the diminishing impact of lockdown restrictions on economic activity.
EUR/USD AT RISK OF A FURTHER DETERIORATION
EUR/USD: The Euro kicked the week off on the back foot breaking below its 50 DMA reinforcing the near-term bearish outlook. The Euro has suffered at the hands of a stronger US Dollar which yesterday broke above its downtrend bringing 91.00 into focus. A close above 91.00, could see more upside in the US Dollar.
The chaotic rollout of the vaccine has added pressure to the Euro. As such, EUR/USD is testing support at 1.2065 a level which had held firm throughout January. A break through here opens the door to 1.2000-11 where Euro longs are likely to liquidate below this area.
Currencylive.com is a news site only and not a currency trading platform. Currencylive.com is a site operated by Wise US Inc ("We", "Us"), a Delaware Corporation. We do not guarantee that the website will operate in an uninterrupted or error-free manner or is free of viruses or other harmful components. The content on our site is provided for general information only and is not intended as an exhaustive treatment of its subject. We expressly disclaim any contractual or fiduciary relationship with you on the basis of the content of our site, any you may not rely thereon for any purpose. You should consult with qualified professionals or specialists before taking, or refraining from, any action on the basis of the content on our site. Although we make reasonable efforts to update the information on our site, we make no representations, warranties or guarantees, whether express or implied, that the content on our site is accurate, complete or up to date, and DISCLAIM ANY IMPLIED WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE. Some of the content posted on this site has been commissioned by Us, but is the work of independent contractors. These contractors are not employees, workers, agents or partners of Wise and they do not hold themselves out as one. The information and content posted by these independent contractors have not been verified or approved by Us. The views expressed by these independent contractors on currencylive.com do not represent our views.