EURUSD has changed its direction; the asset is trying to recover.

The major currency pair is “in the black” on Tuesday. The current quote for the instrument is 1.2080.

Positive market sentiment about the upcoming stimulus measures from the US government is slowly fading away. it’s quite clear that the Democratic party will one way or another pass the $1.9 trillion COVID-19 stimulus plan but not earlier than the special unemployment benefits program expires. It means that the plan won’t get anywhere until at least March 15th. In this light, investors are correcting their USD positions.

The statistics published by the Euro Area yesterday were surprisingly weak. The Sentix Investor Confidence showed -0.2 points in February after being 1.3 points in January and against the expected reading of 4.1 points. However, where else can the confidence go when consumers in some European countries are restricted in their movements due to the lockdown?

The German Industrial Production report for December was pretty bad – the indicator showed no changes after adding 1.5% m/m the month before and against the expected increase by 0.1% m/m.

There are no European statistics in the macroeconomic calendar apart from the German Trade Balance. In the afternoon, the USA is scheduled to report on the NFIB Small Business Index, which is expected to rise in January. However, this indicator is minor and won’t have any significant influence on EURUSD.