Fundamental analysis
11 January, 2019
Research Department
EUR/USD was trading up 0.30% on Friday to test a session high of 1.15392. The euro on Friday was headed for its biggest weekly rise in over four months with the dollar weakening on cautious signals from the Federal Reserve about further rate hikes. The euro has been stuck in a $1.12-$1.15 range for the last three months due to growth fears and signs the European Central Bank is unlikely to end its stimulus soon. But dovish Fed minutes this week have triggered dollar selling allowing the euro surge to as high as $1.1581. Despite its recent gains the single currency has been pressured by a slew of weaker-than-expected economic data, especially from France and Germany. The European Central Bank is widely expected to remain accommodative in 2019, which traders say should prevent the currency from breaking much higher. Later this afternoon (13:30 GMT), US Inflation data for December will be in the focus of many market participants.
