EURUSD is under pressure again. Overview for 29.01.2021
After a short pause last night, EURUSD resumed falling.
The major currency pair is falling on Friday after a short pause last night. The current quote for the instrument is 1.2100.
Yesterday, the USA published an advance GDP for the fourth quarter of 2020, which showed 4.0% q/q against the first estimate of 4.2% q/q. This slowdown may be forced by the low consumption due to the pandemic and quarantine restrictions in everyday life.
In the first quarter of 2021, the country’s economy is expected to add 5%, while in the second – 7-8%, provided that the White House continues the stimulus measures.
The Unemployment Claims showed 847K over the week after being 914K the week before and against the expected reading of 880K. It’s a good signal for the American economy.
Later today, the USA is scheduled to publish a lot of reports. For example, investors should pay attention to the Personal Spending and Income for December, which may show -0.4% m/m (the same as the month before) and +0.1% m/m (better than -1.1% m/m in November). The stronger the readings, the better for the USD.
Also, it will be interesting to see the revised report on the Consumer Sentiment from the University of Michigan. Most likely, the indicator will remain at 79.2 points but any improvement might support the “greenback”.