EURUSD: euro is trying to catch up with pound

On Tuesday, January 12, following the trading results, the euro rose in price against the US dollar by 0.46%, to 1.2206. The 1.2130-1.2135 zone provided good support for the rebound to 1.2220, including today. Before the upward movement, the rate declined to 1.2137 against the background of the fall of the EUR / Pound cross pair, as well as statements by Angela Merkel.

German Chancellor Angela Merkel believes that the isolation regime can be extended for another 8-10 weeks. In her opinion, the country needs to stop the spread of infection so that there is no sharp increase in the number of cases of infection by Easter.

In the American session, the euro strengthened against the background of the dollar’s fall. The Britan has become a locomotive for the entire market. Demand for the pound has increased after the head of the Bank of England Andrew Bailey denied speculation about the introduction of negative rates.

The US dollar has fallen in price due to lower bond yields and increased demand for risky assets. The yield on 10-year Treasury bonds fell from a 10-month high by six basis points to 1.13% per annum.

Scheduled statistics (GMT + 3)

  • ECB President Christine Lagarde will deliver a speech at 12:00.
  • At 13:00 the eurozone will announce a change in industrial production for November.
  • At 16:30 the US is to publish the consumer price index for December.
  • At 18:30 the US will announce a change in oil reserves according to the Department of Energy.
  • At 9:00 pm, the US will release the Fed’s Beige Book and December budget execution report.

Current situation

At the auctions in Asia, the price rose to 1.2220. At the time of this writing, the euro is worth 1.2212. The euro / dollar pair rose from a minimum of 1.2132 to 67 degrees (1.2213). Buyers have broken the trend line (1.22) from the top of 1.2345.

On the hourly TF in the euro / pound pair, growth is planned. If buyers can fight off 0.8920, like the euro / dollar, then if the price rises above 0.8945, a rally in the euro to 1.2270 can be expected. If the pound continues to dominate the cross, growth will be limited to the 1.2228 / 1.2235 level. With the growing cross-pair euro / pound and the weakening dollar, the actual target for buyers will be the level of 1.2293.

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