EUR USD Technical and Fundamental Overview 25 January 2021
EUR/USD is rising as the Biden administration continues promoting its stimulus plan, despite pushback from lawmakers. The German IFO Business Climate figures for January and a speech from the ECB’s Lagarde are on the docket.
The pair faced rejection near 1.2190 on Friday, forming a daily candle with a long upper wick, a sign of bull fatigue.
The German IFO Expectations index is seen rising to 93.2 in January from December’s 92.8. The IFO Expectations released by the CESifo Group is an early indicator of current conditions and business expectations for the next six months.
A big beat on expectations would indicate continued recovery amid the resurgent coronavirus concerns first signaled by Friday’s above-forecast German Manufacturing PMI and strengthen the bid tone around the shared currency, lifting EUR/USD above 1.22.
Apart from the German IFO, speech by European Central Bank’s President Christine Lagarde and policymaker Weidmann could also inject volatility into the euro markets. At press time, EUR/USD is trading lagely unchanged on the day near 1.2175.