EURUSD is recovering. Overview for 31.01.2022

EURUSD rebounded from its local bottom and is trying to regain its positions.  

The major currency pair recovered a little bit on Monday. The current quote for the instrument is 1.1177.

The first supporting factor is that the craze around the US Fed January meeting is dying down – all the statements, decisions, and intentions are already included in prices, and all that’s left to do right now is waiting for the regulator to close the QE programme and raise the benchmark interest rate for the first time in many months. Another factor is the declining demand for the “greenback” as a “safe haven” asset after market players stopped selling messily. That’s the high time for reaching stability. 

The statistics published by the US recently weren’t impressive. For example, the Core PCE Price Index added 0.5% m/m in December, the same as expected. Why is it important? The Fed monitors this indicator when making fiscal decisions, that’s why it shouldn’t be underestimated. 

The Personal Spending dropped 0.6% m/m in December, the same as expected, after adding 0.4% m/m in November. At the end of 2021, this decline can be explained by the fact that people were buying Christmas and New Year presents earlier than usual. The Personal Income added 0.3% m/m against the expected reading of 0.5% m/m.

The final report on the University of Michigan Consumer Sentiment reduced to 67.2 points in January after being 68.8 points the month before. by the way, the indicator wasn’t expected to change. However, this local decline can be explained by complications ш the current epidemiological situation.