Articles
US Interest Rate Decision Preview: Investors to focus on Federal Reserve’s response to new reality
369258 January 31, 2024 21:35 FXStreet Market News
- The Federal Reserve is widely anticipated to keep interest rates unchanged.
- Fed Chairman Jerome Powell could shed further details on upcoming rate cuts.
- The US Dollar could find extra legs in case of a hawkish outcome.
The Federal Reserve (Fed) will announce the first monetary policy of 2024 on Wednesday, and market participants largely expect the Committee to leave the Fed Funds Target Range unchanged at 5.25%–5.50%. If consensus materializes, the January 31 meeting will be the fourth consecutive meeting the bank has kept its interest rates at the highest level in over two decades.
At his latest post-FOMC press conference, Federal Reserve Chair Jerome Powell refrained from giving specific guidance on the timing and pace of rate cuts. However, he emphasized that the Fed would need to implement rate cuts well in advance of annual inflation rates reaching their 2% target. Waiting until the target is achieved could have negative consequences for the economy due to the delayed impact of monetary policy. Additionally, Chair Powell expressed concerns about keeping rates too high for an extended period, as this could potentially hinder economic growth.
In light of the upcoming event, Senior Economist Tom Kenny and Economist Arindam Chakraborty at ANZ comment they continue to adhere to their recent advice that they believe a rate cut around the middle of the year would be fitting, but they must also be receptive to the idea of implementing rate reductions earlier. Monetary policy is no longer following a predetermined path, and the Fed must navigate the delicate balance of achieving sustained inflation at the target while avoiding a rapid increase in real interest rates, which could pose a risk of a sharp economic downturn.
Although there is now a debate among market participants regarding a potential interest rate cut in March or May, it appears that the decision to keep rates unchanged at the January 31 meeting appears to be a “done deal”. According to the FedWatch Tool measured by CME Group, the probability of an interest rate reduction in March surpasses 46% vs. nearly 52% of the same outcome at the May 1 gathering.
Anticipating the Federal Reserve’s Outlook: What Lies Ahead?
Having commenced its tightening efforts in the beginning of 2022, the Fed has executed a total of 525 bps of increases to interest rates and diminished its security holdings by more than $1 trillion. Although these measures have had an impact on the economy, according to Powell, their full effects have not yet materialized. Consequently, determining the duration of the required restrictive policy and the timing for initiating cuts is currently challenging.
In the December Summary of Economic Projections (SEP), it has been revealed that the median member of the Federal Open Market Committee (FOMC) now expects a total of 75 basis points of interest rate cuts in 2024. This represents an increase of 25 basis points compared to the projections made during the September meeting. This adjustment in rate expectations may potentially be attributed to a slight downward revision in the Federal Reserve’s inflation forecasts. The “dot plot” reveals a forecast of four additional interest rate cuts in 2025, totaling a decrease of one percentage point. Furthermore, three more reductions are projected for 2026, which would bring the fed funds rate to a range of 2% to 2.25%, aligning it closely with the long-term outlook.
Earlier this month, FOMC Governor Chris Waller stated that the timing of interest rate cuts in the current year would depend on discussions within the Federal Reserve policy-setting panel. He emphasized his preference to delay rate cuts until the Fed is “reasonably convinced” that inflation consistently reaches the target of 2%.
Similarly, Raphael Bostic, the Atlanta Fed’s counterpart, expressed his willingness to consider implementing interest rate reductions before July if there is “compelling” evidence of inflation slowing down more rapidly than initially expected. While reaffirming the plan to begin rate cuts in the third quarter, he stressed the importance of exercising caution to prevent premature reductions that could reignite demand and inflationary pressures.
Regarding inflation, Fed officials anticipated a decline in core inflation to reach 3.2% in 2023 (it actually ended the year at 2.9%), dropping to 2.4% in 2024 and then to 2.2% in 2025. Eventually, the expectation is for it to return to the 2% target by the year 2026.
When it comes to inflation tracked by the PCE, the Committee revised its inflation forecast downward at 2.8% for 2023 (the official data eventually came out at 2.6% for December), then 2.4% in 2024, 2.1% in 2025, and 2.0% in 2026.
When will the Fed announce policy decisions and how could they affect EUR/USD?
The Federal Reserve is scheduled to announce its decision and publish the monetary policy statement at 19:00 GMT. This will be followed by Chairman Jerome Powell’s press conference at 19:30 GMT. There won’t be an updated dots plot this time.
While it is widely expected that policymakers will maintain the current interest rates at 5.25%, market participants will closely scrutinize Chair Jerome Powell’s remarks for any hints regarding the timing of potential rate cuts, especially given the recent decrease in expectations for rate cuts in March.
As the Federal Reserve gets ready for its first meeting of a new year, its challenges look different from those from, say, a year ago. By this time, disinflationary pressures appear to be running firm against the backdrop of higher interest rates, diminishing energy costs and a still pretty tight labor market, all amidst a healthy resilience of the US economy.
Recent strong US fundamentals have reinforced the view above, paving the way for an increasingly likely “soft landing”. On this, Chair Powell is expected to keep a cautious tone and emphasize that there is still work to be done regarding inflation, while keeping the Fed’s data-dependent stance intact.
Other than that, investors should be closely monitoring any signs from Powell regarding the timing of the potential start of an easing cycle
Pablo Piovano, Senior Analyst at FXStreet, notes: “The USD Index (DXY) seems to have embarked on a consolidative phase around the 103.50 zone in the last couple of weeks, in quite a vigilant stance ahead of imminent key events. Around this area also coincides with the critical 200-day SMA. The surpassing of this region could open the door to further gains in the short-term, with an interim target at the 100-day SMA around 104.30, where the December 2023 highs also sit. On the downside, a rapid loss of momentum should not see any contention of significance until the December 2023 low in the 100.60 zone.”
Regarding EUR/USD, Piovano adds: “EUR/USD has kicked off the new trading year well on the defensive, uninterruptedly shedding more than three cents since late December peaks near 1.1140 amidst the resurgence of a strong bid bias in the US Dollar. The loss of the so-far 2024 low around 1.0795 could expose extra weakness to the December low at 1.0723. In case of bouts of strength, the pair should need to subsequently clear the 55-day SMA around 1.0910, seconded by the weekly top around the psychological 1.1000 barrier just to refocus on the December high near 1.1140.
Finally, Piovano suggests that a sustained decline below the critical 200-day SMA in the 1.0840 area should shift the pair’s outlook to the downside, which would allow for a deeper decline initially to the December 2023 low at 1.0723 (December 8). Further losses from here should require an important worsening of the EUR’s outlook, which appears to be unlikely for the time being.”
FOMC speech tracker: Lack of dovish remarks in the new year
Federal Reserve officials alternated some cautious vocabulary with several hawkish speeches, before the 10-day blackout period ahead of their first FOMC meeting and interest rate decision of 2024. December and January have been notable for the lack of dovish speeches from FOMC board members, refusing to commit to any specific dates or targets for rate cuts.
That said, the general tone going into the meeting is still notably balanced, as over 70% of the analyzed speeches came out with a neutral tone towards monetary policy, enhancing the data-driven approach the Federal Reserve has enforced over the last months.
*Voting members in 2024.
**0-10 scale where 0 is most dovish and 10 is most hawkish.
FOMC speech counter
| TOTAL | Voting members | Non-voting members | |
|---|---|---|---|
| Hawkish | 5 | 4 | 1 |
| Balanced | 18 | 13 | 5 |
| Dovish | 0 | 0 | 0 |
This content has been partially generated by an AI model trained on a diverse range of data.
Economic Indicator
United States FOMC Press Conference
The press conference is about an hour long and has two parts. First, the Chair of the Federal Reserve (Fed) reads out a prepared statement, then the conference is open to questions from the press. The questions often lead to unscripted answers that create heavy market volatility. The Fed holds a press conference after all its eight yearly policy meetings.
Fed FAQs
Monetary policy in the US is shaped by the Federal Reserve (Fed). The Fed has two mandates: to achieve price stability and foster full employment. Its primary tool to achieve these goals is by adjusting interest rates.
When prices are rising too quickly and inflation is above the Fed’s 2% target, it raises interest rates, increasing borrowing costs throughout the economy. This results in a stronger US Dollar (USD) as it makes the US a more attractive place for international investors to park their money.
When inflation falls below 2% or the Unemployment Rate is too high, the Fed may lower interest rates to encourage borrowing, which weighs on the Greenback.
The Federal Reserve (Fed) holds eight policy meetings a year, where the Federal Open Market Committee (FOMC) assesses economic conditions and makes monetary policy decisions.
The FOMC is attended by twelve Fed officials – the seven members of the Board of Governors, the president of the Federal Reserve Bank of New York, and four of the remaining eleven regional Reserve Bank presidents, who serve one-year terms on a rotating basis.
In extreme situations, the Federal Reserve may resort to a policy named Quantitative Easing (QE). QE is the process by which the Fed substantially increases the flow of credit in a stuck financial system.
It is a non-standard policy measure used during crises or when inflation is extremely low. It was the Fed’s weapon of choice during the Great Financial Crisis in 2008. It involves the Fed printing more Dollars and using them to buy high grade bonds from financial institutions. QE usually weakens the US Dollar.
Quantitative tightening (QT) is the reverse process of QE, whereby the Federal Reserve stops buying bonds from financial institutions and does not reinvest the principal from the bonds it holds maturing, to purchase new bonds. It is usually positive for the value of the US Dollar.
Canada Gross Domestic Product (MoM) above expectations (0.1%) in November: Actual (0.2%)
369256 January 31, 2024 21:33 FXStreet Market News
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If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
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United States Employment Cost Index came in at 0.9% below forecasts (1%) in 4Q
369255 January 31, 2024 21:33 FXStreet Market News
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
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EUR/USD Forecast: Looming US Federal Reserve’s announcement keeps investors on their toes
369253 January 31, 2024 21:29 FXStreet Market News
EUR/USD Current price: 1.0846
- Germany reported the Harmonized Index of Consumer Prices eased by more than anticipated in January.
- The United States ADP survey showed the private sector added 107K new jobs in January, worse than expected.
- EUR/USD is technically bearish and could accelerate south on a break through 1.0800.
Financial markets are on pause this Wednesday, with EUR/USD changing hands around the 1.0840 level and confined to a tight intraday range, ahead of the United States (US) Federal Reserve’s (Fed) monetary policy announcement. The Federal Open Market Committee (FOMC) surprised investors in December by anticipating three rate cuts for 2024. At the same time, however, policymakers were reluctant to provide clearer clues on the extent and timing of such rate cuts.
Financial markets are pretty convinced the Fed will pull the trigger next March, delivering a 25 basis points (bps) rate cut, despite officials arduously trying to cool down such hopes. The FOMC is widely anticipated to maintain its monetary policy unchanged, with the focus on Chair Jerome Powell’s words. In the press conference, Powell will likely avoid giving markets what they want, that is, a certain date for the first rate cut.
Meanwhile, data coming from the Eurozone failed to impress. Germany reported that Retail Sales were down 1.6% MoM in December, worse than anticipated, although the January Unemployment Rate improved in January to 5.8% from 5.9% previously. The country also released the preliminary estimate of the Harmonized Index of Consumer Prices (HICP), which rose 3.1% YoY in January, easing from the previous 3.8%.
Across the pond, the US published the ADP survey on private job creation, showing the country added 107K new positions in January, much worse than the 145K anticipated by market players. December figure was downwardly revised to 158K from 164K previously reported. With the Fed in the way, EUR/USD showed no reaction to the news.
EUR/USD short-term technical outlook
From a technical point of view, the EUR/USD pair is biased lower. The pair is seesawing around a flat 200 Simple Moving Average (SMA) in the daily chart, while the 20 SMA maintains its bearish slope above the current level, providing dynamic resistance at around 1.0900. At the same time, technical indicators head south within negative levels, although with uneven strength.
In the near term, and according to the 4-hour chart, EUR/USD is neutral. The pair is currently developing around a flat 20 SMA, while the longer moving averages head lower far above the current level. Technical indicators, in the meantime, turned higher, but are currently struggling to overcome their midlines, limiting the bullish potential.
Support levels: 1.0800 1.0760 1.0720
Resistance levels: 1.0900 1.0945 1.0990
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US private sector employment rises 107,000 in January vs. 145,000 expected
369252 January 31, 2024 21:21 FXStreet Market News
- Private sector employment grew at a softer pace than expected in January.
- US Dollar Index continues to fluctuate near 103.50 ahead of the Fed policy announcements.
Private sector employment in the US rose by 107,000 in January, while annual pay was up 5.2% year-over-year, the data published by Automatic Data Processing (ADP) showed on Wednesday. This reading followed the 158,000 increase (revised from 164,000) recorded in December and came in below the market expectation of 145,000.
Commenting on the survey’s findings, “progress on inflation has brightened the economic picture despite a slowdown in hiring and pay,” said Nela Richardson, chief economist, ADP. “Wages adjusted for inflation have improved over the past six months, and the economy looks like it’s headed toward a soft landing in the US and globally.”
Market reaction
This report don’t seem to be having a noticeable impact on the US Dollar’s valuation ahead of the Federal Reserve’s highly-anticipated monetary policy announcements. At the time of press, the US Dollar Index was virtually unchanged on the day at 103.42.
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ADP US January employment +107K vs +145K expected
369251 January 31, 2024 21:17 Forexlive Latest News Market News
US ADP employment
- Prior was +164K (revised to +158K)
The median change in annual pay:
- Job stayers 5.2% versus 5.4% last month
- Job changers 7.2% versus 8.0% last month
I’m not sure anyone wants to bet the farm on ADP but if you take the last five months, there’s a clear weakening trend to around 100K.
Comment from ADP chief economist Nela Richardson:
“Progress on inflation has brightened the economic
picture despite a slowdown in hiring and pay. Wages adjusted for
inflation have improved over the past six months, and the economy looks
like it’s headed toward a soft landing in the US and globally.”
United States ADP Employment Change below expectations (145K) in January: Actual (107K)
369250 January 31, 2024 21:17 FXStreet Market News
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
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Pound Sterling faces sell-off as market mood turns cautious ahead of Fed, BoE policy
369248 January 31, 2024 21:12 FXStreet Market News
- The Pound Sterling drops amid uncertainty over the Fed and theBoE monetary policy meetings.
- The Fed and the BoE are widely expected to leave interest rates unchanged.
- UK business optimism improves due to soft inflation outlook and expectations of upcoming rate cuts.
The Pound Sterling (GBP) remains under pressure on Wednesday’s European morning as markets brace for the US Federal Reserve’s (Fed) monetary policy meeting. Investors see the Fed leaving interest rates unchanged in the range of 5.25%-5.50%, shifting their focus towards any guidance about when the central bank will start cutting interest rates and at which speed. In its last monetary policy meeting, the Fed projected a 75-basis-points (bps) reduction in interest rates in 2024.
The GBP/USD pair trades broadly sideways, but a defined action is expected after the Fed and Bank of England (BoE) announce their first monetary policy decisions of 2024. The BoE is also expected to maintain the status quo for the fourth time in a row. Price pressures in the United Kingdom economy have peaked now, but investors lack confidence about inflation returning to the 2% target in a sustainable manner.
Apart from the Fed decision, market volatility is expected to increase later this Wednesday as investors will focus on the US Automatic Data Processing (ADP) Employment Change data for January. This will be followed by the Institute of Supply Management (ISM) Manufacturing PMI and Nonfarm Payrolls (NFP) data, which will be published on Thursday and Friday, respectively.
Daily digest market movers: Pound Sterling remains on backfoot while US Dollar holds gains
- The Pound Sterling remains under pressure as the market mood is quite cautious ahead of the interest rate decision by the Federal Reserve.
- The Fed is anticipated to maintain status-quo, suggesting there is no rush for delivering a dovish signal as inflation in the United States economy is still far from the desired rate of 2%.
- The progress in inflation declining towards the 2% target has slowed as labor market conditions are strong, consumer spending is robust, and the economy is growing at a stronger pace.
- Further moves in the Pound Sterling will also be driven by the Bank of England’s monetary policy decision, which will be announced on Thursday.
- Like the Fed, the BoE is expected to deliver a steady interest rate decision for the fourth straight time, leaving interest rates unchanged at 5.25%.
- As an unchanged monetary policy decision is widely anticipated, market participants will majorly focus on the interest rate outlook.
- Unlike the Fed and the European Central Bank (ECB), BoE policymakers have not discussed the timing or scope of interest rate cuts in 2024. Therefore, discussions about rate cuts would be considered as bearish for the Pound Sterling.
- The reasoning behind BoE’s emphasis on keeping interest rates at the current levels is elevated inflation, which is higher in the UK in comparison with other members of the Group of Seven economies.
- Meanwhile, vulnerable economic growth could be a factor that will force BoE policymakers to discuss rate cuts.
- The Lloyds Bank Business Barometer rose to a two-year high of 44% amid hopes of softer inflation and interest rate cuts. The survey showed that businesses are planning to increase their workforce ahead.
- Meanwhile, the US Dollar Index (DXY) rises as the appeal for safe-haven assets improves ahead of the Fed’s decision.
- Apart from the Fed’s policy decision, investors will focus on the ADP Employment Change data for January, which will be published at 13:15 GMT. Investors anticipate that US private employers hired 145K job-seekers, lower than 164K payroll additions in December.
Technical Analysis: Pound Sterling sustains below 1.2700
Pound Sterling faces a sell-off ahead of the Fed’s interest rate policy. The GBP/USD pair continues to face pressure near the round-level resistance of 1.2700. The Cable has been stuck in a tight range between 1.2640-1.2775 during the last two weeks.
A descending triangle formation is visible on the daily timeframe, which indicates that investors are on the sidelines. The horizontal support of the aforementioned chart pattern is plotted from the December 21 low at 1.2612, while the downward-sloping trendline is placed from the December 28 high at 1.2827. The 14-period Relative Strength Index (RSI) oscillates in the 40.00-60.00 range, which indicates a lackluster move ahead.
Interest rates FAQs
Interest rates are charged by financial institutions on loans to borrowers and are paid as interest to savers and depositors. They are influenced by base lending rates, which are set by central banks in response to changes in the economy. Central banks normally have a mandate to ensure price stability, which in most cases means targeting a core inflation rate of around 2%.
If inflation falls below target the central bank may cut base lending rates, with a view to stimulating lending and boosting the economy. If inflation rises substantially above 2% it normally results in the central bank raising base lending rates in an attempt to lower inflation.
Higher interest rates generally help strengthen a country’s currency as they make it a more attractive place for global investors to park their money.
Higher interest rates overall weigh on the price of Gold because they increase the opportunity cost of holding Gold instead of investing in an interest-bearing asset or placing cash in the bank.
If interest rates are high that usually pushes up the price of the US Dollar (USD), and since Gold is priced in Dollars, this has the effect of lowering the price of Gold.
The Fed funds rate is the overnight rate at which US banks lend to each other. It is the oft-quoted headline rate set by the Federal Reserve at its FOMC meetings. It is set as a range, for example 4.75%-5.00%, though the upper limit (in that case 5.00%) is the quoted figure.
Market expectations for future Fed funds rate are tracked by the CME FedWatch tool, which shapes how many financial markets behave in anticipation of future Federal Reserve monetary policy decisions.
Germany Consumer Price Index (MoM) meets expectations (0.2%) in January
369247 January 31, 2024 21:09 FXStreet Market News
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
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Germany Harmonized Index of Consumer Prices (YoY) below forecasts (3.2%) in January: Actual (3.1%)
369246 January 31, 2024 21:09 FXStreet Market News
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
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Germany: Inflation decelerates further in January
369244 January 31, 2024 21:05 FXStreet Market News
According to Destatis, the preliminary Inflation Rate in Germany showed consumer prices rising at a monthly 0.2% in January (from 0.1%) and 2.9% over the last twelve months (from 3.7%).
Furthermore, the resurgence of disinflationary pressures rapidly left behind the annualized rebound observed in the CPI in the last month of 2023.
Market reaction: EUR/USD keeps daily highs near 1.0840
Soon in the wake of the release, price action in EUR/USD remained quite apathetic in the upper end of the daily range around 1.0840, as investors get ready for the publication of the ADP report.
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