EUR/USD: Fundamentals support the bid – FXStreet

By FXStreet Valeria Bednarik, chief analyst at FXStreet explained that the EUR/USD rallied up to 1.1337 this Tuesday, as the dollar keeps plummeting on risk-averse sentiment trading.

Key Quotes:

“Worldwide stocks extended their decline as oil prices fell over 4% mid American afternoon, and major pairs traded accordingly, with macroeconomic data being mostly ignored all through the day.

This Wednesday, FED’s head, Janet Yellen, is due to testify on the Semiannual Monetary Policy Report before the Congress, and the ongoing markets’ turmoil and the risk it poses to future economic growth, anticipates a dovish stance. Earlier in the day, German’s trade balance showed a decreasing surplus of €18.8B as exports and imports decreased by 1.6%, each.

The country’s industrial production decreased by 1.2% in December, also indicating shrinking growth. In the US, Job openings rebounded in December to 5.6 million, bringing the opening rate back to a series high of 3.8%. But wholesales inventories in the same month fell for the third straight month, down by 0.1% to a seasonally adjusted $582 billion, while annualized growth in restocking slowed to 1.9% from a 6% pace early last year.”
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Source:: FX Street