EURO Rebounds on ECB Economic Outlook, US Dollar Turns Mild After Release

EURO Rebounds on ECB Economic Outlook, US Dollar Turns Mild After Release

The euro is recovering moderately early in the US session after the ECB said the downside risks to the economic outlook were less pronounced. However, it remains one of the worst of the week, along with the dollar, yen, and Swiss franc.

The dollar is still under pressure after worse-than-expected jobless claims data. The Canadian dollar is now leading among other commodity currencies, and the pound sterling is growing after the head of the Bank of Canada Tiff Maclem said that there is no need for additional stimulus based on the baseline scenario.

The ECB, as expected, left its “highly adaptive monetary policy stance” unchanged. The main refinancing rate was kept at the level of 0.00%, the marginal interest rate a, and the rate on deposits – 0.25% and -0.50%, respectively.

Rates will “remain at or below current levels until the inflation forecast steadily approaches a level close enough to but below 2% within its forecast horizon, and this convergence will continue to be reflected in core inflation dynamics.”
US Dollar Turns Mild After the Release of Job Data
The US dollar fell today after the inauguration of Joe Biden. The dollar index fell 0.32%, continuing the trend that started on Tuesday.

As Janet Yellen suggested, traders usually expect new incentives from the current administration. US data showed that building permits rose to 1.704 million in December from 1.635 million in the previous month. During the same period, the number of commissions increased from 1.547 million to 1.6 million. And last week, over 900,000 Americans signed up for initial jobless claims.

The number of initial applications for unemployment benefits in the United States fell by 26 thousand to 900 thousand for the week ended January 16, which is higher than expectations of 860 thousand people.

Also published data on the production conditions of the Federal Reserve Bank of Philadelphia in January to 26.5 from 9.1, which is above expectations of 12.2. Housing construction commissioning in December rose to 1.67 million against forecasts of 1.56 million. Building permits rose to 1.71 million from the expected 1.60 million.

  • Broker
  • Benefits
  • Min Deposit
  • Score
  • Visit Broker
  • Over 100 different financial products
  • Invest from as little as $10
  • Same-day withdrawal is possible
$100 Min Deposit
9.8
  • Award-winning Cryptocurrency trading platform
  • 14 Cryptoassets available to invest in
  • FCA & Cysec regulated
$200 Min Deposit
9.8
  • Trade top Cryptos such as Bitcoin, Litecoin and Ethereum plus more
  • Zero commissions and no bank fees on transactions
  • Around the clock service with support in 14 languages
$100 Min Deposit
8.5
  • 20% welcome bonus of upto $10,000
  • Minimum deposit $100
  • Verify your account before the bonus is credited
$100 Min Deposit
9
  • Award-winning Cryptocurrency trading platform
  • $100 minimum deposit,
  • FCA & Cysec regulated
$100 Min Deposit
9.8
Share with other traders!

Author : Azeez Mustapha

Avatar

Azeez Mustapha is an experienced author, trader, markets analyst, signals strategist, and funds-manager.