The Euro slowed down its decline. Overview for 02.02.2021
EURUSD plunged yesterday but market players are in no hurry to sell today.
The major currency pair stopped falling on Tuesday morning the way it did yesterday; investors are waiting and watching. The current quote for the instrument is 1.2070.
Yesterday, there were a lot of talks “on the sidelines” that the USA got an advantage in helping its economy to recover faster due to the fast-paced vaccination. It supported the USD and put additional pressure on the Yen and the Euro.
Like it was said earlier, all statistics from Germany will hit the stage soon and the data published yesterday was no exception: the Retail Sales showed -9.6% m/m in December after being 1.1% m/m in November and against the expected reading of -2.0% m/m. The key reason for this decline is quarantine restrictions and lockdown, which were introduced to control the pandemic. Consumer interest and, as a consequence, retail sales plummeted. Most likely, the January data will be pretty much the same.
For the Euro, any negative news from Germany is now a clear reason for plunging.
Later today, investors should pay attention to the Euro Area GDP report for the fourth quarter of 2020, which is expected to show -0.9% q/q after being 12.5% q/q the quarter before. The stronger the reading, the more chances the Euro has to recover.