EURUSD continues falling; it has dropped to its 2-year lows.
The major currency pair is “knocked down” at the end of the trading week. The current quote for the instrument is 1.1155.
So, the USD continues its rally. The key trigger for that is the results of the US Fed January meeting. Market players are expecting aggressive tightening of the regulator’s monetary policy and waiting for four of five rate hikes this year. Another supporting factor was the improved statistics in the fourth quarter of 2021.
The US GDP in the fourth quarter of 2021 added 6.9% q/q after expanding by 2.3% q/q the quarter before and against the expected reading of 5.3% q/q. As one can see, the American economy skyrocketed if compared with the previous quarter. The report confirms the Fed’s “hawkish” tone and allows the regulator to move in the chosen direction.
Nevertheless, today’s economic calendar is quite interesting. The US is scheduled to report on the Revised UoM Inflation Expectations for January, and also Personal Income/Spending in December.
Source: Roboforex
