The Euro lost to the USD. Overview for 17.02.2021
EURUSD fell on Wednesday; the “greenback” is feeling confident again.
The major currency pair was looking pretty stable but the market sentiment quickly changed. The current quote for the instrument is 1.2065.
Nothing terrible has happened but market players are once again paying attention to what is happening in Germany and analyzing everything that has something to do with the largest economy in Europe. Yesterday, Peter Altmaier, the German Minister for Economic Affairs and Energy said that the country’s economy would prosper and flourish if there was the third wave of the coronavirus pandemic. He sounded quite logical: it’s no use canceling the quarantine restrictions because this act may result in a new wave of the disease. Altmaier also said that the government was well aware that the German businesses badly needed the lockdown to be canceled but would be very careful with it.
In the nearest future, German authorities are going to consider more measures to help national companies, for example, they have already let the companies with annual sales of over €750K apply for grants. Earlier, there was a restriction that didn’t allow such big companies to receive grants from the government.
The fact that Germany is removing the quarantine restrictions very slowly is putting pressure on the country’s economy, as well as the Euro.
The Euro Area GDP report turned out to be better than expected: it showed -0.6% q/q against the expected reading of -0.7% q/q, although it didn’t make investors more optimistic – the indicator remained negative.
Today, market players will focus their attention on the Retail Sales data for January from the USA and everything that is related to it. Forecasts are pretty optimistic and may support the “greenback”.