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Greenback, EUR Trade Firm Into the Close

FOREX

Markets welcomed the smooth inauguration of President Biden earlier this week by bidding US equity markets to new alltime highs. The sentiment faded Friday, with stocks slipping on the continent and in the US in a wave of profit-taking on the recent risk rally. This flattered the greenback, which outperformed most others in G10, while EUR also traded well.

Notably firm EU PMIs Friday morning supported the single currency from the off, although the primary support likely remained the ECB meeting Thursday, in which the ECB President looked unconcerned over currency strength. EUR/GBP recovered the Thursday losses as UK PMIs showed persistent economic weakness.

Focus in the coming week turns to German IFO confidence data, Australian and German regional inflation, US prelim Q4 GDP and MNI Chicago PMI. The Fed rate decision is due Wednesday.

MNI London Bureau | +44 203-865-3809 | edward.hardy@marketnews.com
MNI London Bureau | +44 203-865-3809 | edward.hardy@marketnews.com

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