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EUR/USD slipped to its lowest levels....>

EURO-DOLLAR
EURO-DOLLAR: EUR/USD slipped to its lowest levels in a month yesterday, but only
to retrace the move later in the day. The initial sell-off was driven by a
stronger greenback, amid a U.S.-holiday-thinned liquidity. The rate bottomed out
at $1.1077 just ahead of the WMR fix, before bouncing off there. Recovery was
aided by reports that U.S. President Trump and French President Macron struck a
tariff truce, according to which neither country will impose punitive levies on
the other this year. The announcement came amid an ongoing dispute re: digital
tax that has driven a wedge between Washington and Paris.
- At typing, EUR/USD is almost unch. at $1.1094. A drop below the 100-DMA/
trendline support at $1.1071/69 would expose the Dec 6 low of $1.1040. Bulls eye
the 200-DMA, today at $1.1134, ahead of the $1.1143 Jan 17 peak.
- The ECB will communicate its monetary policy decision on Thursday. In terms of
data, EZ highlights include German ZEW survey (today), advance consumer
confidence for the whole bloc (Thursday) and multiple flash PMI surveys
(Friday). ECB Survey of Professional Forecasters & comments from several ECB
members taking part in the WEF are due on Friday.

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