The Euro dropped to its six-week lows. Overview for 18.01.2021
EURUSD continues falling amid European lockdowns and expectations of a new stimulus package in the USD.
Early in another January week, the major currency remains weak. The current quote for the instrument is 1.2070.
The statistics published by the USA last Friday were rather mixed but market players are not taking heart and still hoping for the best. The US Retail Sales dropped by 0.7% m/m in December after being -1.4% m/m in November and against the expected reading of zero. The Core Retail Sales lost 1.4% m/m after reducing by 1.3% m/m the month before and against market expectations of -0.1% m/m. These declines mean that consumers are very cautious about the future economic outlook and don’t want to spend much money.
On the other hand, the Industrial Production in the USA added 1.6% m/m in December after expanding by 0.5% m/m in the previous month and against the expected growth by 0.5% m/m. The Capacity Utilization Rate rose from 73.4% to 74.5% over the same period.
A preliminary report on the Consumer Sentiment from the University of Michigan was an unpleasant surprise as it dropped to 79.2 points in January after being 80.7 points in December and against the expected reading of 79.5 points. It might not be very bad or scary for the beginning of the year but let’s wait and see what will happen next.
The key highlight of this week is the swearing-in of newly-elected US president Joseph Biden, of course. In his official comments as the country’s next President, Biden might talk about the stimulus package to be implemented in the nearest future – this is one of the reasons that provide the “greenback” with so much support these days.