USD slides across the board
The USD could not hold onto early gains made prior to President elect Trump`s speech as Trump disappointing markets by not speaking about any fiscal stimulus or the economy in general. This led to a sell off of the USD as we saw investors unwind speculative long positions which saw the USD index test the 101.00 support level accordingly. Us stocks were choppy but ended the session marginally higher despite a big hit to pharmaceuticals which Trump was on the war path with, siting that the pharmaceutical companies were extorting the American public with exuberant prices.
Key data out of US to determine direction
With the USD on the back foot for now, todays key data will be instrumental in determining the next move for the greenback. Today sees the release of the Unemployment Claims and Import Price data, expected at 266K and 0.8% respectively, and also speeches by two FED members which markets will tune into for a guide to the outlook of the monetary policy stance of these members. Better than expected data and optimism form the two speakers will give the USD another chance to move higher while worse than expected data and pessimistic speeches will see the USD sink further.
EURUSD, will we see parity?
The EURUSD has enjoyed some respite from last month’s selling as the pair has been lifted off its 1.0350 lows in the wake of stable EU data and a declining USD. Today’s EUR data will either send the pair back in the direction of parity or up towards the 1.1000 mark. The data comes in the form of the ECB Monetary Policy Meeting Accounts, which provides in depth insights into the economic conditions that influenced the last ECB decision on monetary policy. Should the accounts show the EU economy in a positive light, we will see the EUR firm against its counterparts while a more pessimistic view will send the EUR south.