On Tuesday morning, EURUSD is a bit “in the black” due to excellent conditions for a correction.
The major currency pair is trying to find some support for recovery. The current quote for the instrument is 1.2100.
There are barely any statistics but investors have plenty of other things to watch.
For example, Reuters poll results show that a new stimulus package, the PEPP worth €1.85 trillion for the next 9 months, from the European Central Bank will have little positive influence on the Euro Area economy. Experts believe that in this light, the economic outlook of the region becomes even more pessimistic. According to the research, in the fourth quarter of 2020, the European GDP lost 2.5% after adding 12.5% in the previous quarter. Market expectations for the first quarter of 2021 imply +0.6%, which is twice less than official forecasts.
In the second, third, and fourth quarters, the indicator may possibly show +2.3%, +1.9%, and +1.0% respectively. it’s not the best news the Euro can get but they are pretty close to reality.
The readings will be better if Europe beats and disburdens the coronavirus pandemic quickly.
The former Chairwoman of the US Federal Reserve Janet Yellen believes that the American economy can find itself in a long and tough recession unless Congress approves additional stimulus packages. Yellen will speak today and she is believed to be assigned to the position of the Fed leader by newly-elected president Joe Biden. Yellen already held this position from 2014 to 2018: she was focused on fighting unemployment and knows how to come to a compromise with other policymakers. If she really gets this job again, it will be at least interesting.
Forecasts presented in this section only reflect the author’s private opinion and should not be considered as guidance for trading. RoboForex bears no responsibility for trading results based on trading recommendations described in these analytical reviews.