Business Sentiment and ECB President Lagarde Put the EUR in Focus

by Warrior2

ECB President Lagarde and German Business sentiment figures will provide the EUR with direction. COVID-19 news and U.S stimulus talks will also be in focus.

Earlier in the Day:

It’s was a quiet start to the week on the economic calendar this morning. There were no material stats to provide the majors with direction early in the day.

The lack of stats left the majors in the hands of U.S stimulus chatter and COVID-19 news. A Joe Biden push to deliver early fiscal support drove demand for riskier assets early on.

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For the Majors

At the time of writing, the Aussie Dollar was up by 0.14% to $0.7726, with the Kiwi Dollar was up by 0.15% to $0.7200.

The Japanese Yen was flat at ¥103.78 against the U.S Dollar.Advertisement

The Day Ahead:

For the EUR

It’s a relatively busy day ahead on the economic calendar. January IFO Business Climate figures for Germany are due out later this afternoon.

Following ECB President Lagarde’s cautious outlook on the economic recovery and some disappointing PMI numbers, we can expect sensitivity to today’s stats.

On the monetary policy front, ECB President Lagarde could also move the dial with a scheduled speech later today.

Away from the economic calendar, however, COVID-19 news will remain a key driver. Vaccination supply, low vaccination rates, and rising new COVID-19 case remain downside risks for the economy.

At the time of writing, the EUR was down by 0.01% to $1.2170.

For the Pound

It’s a quiet day ahead on the economic calendar. There are no material stats to provide the Pound with direction.

The lack of stats should leave the Pound in the hands of COVID-19 news updates. A marked pickup in vaccination rates should support the Pound at the start of the week.

At the time of writing, the Pound was up by 0.04% to $1.3692.

Across the Pond

It’s also a quiet day ahead on the economic calendar. There are no material stats to provide the Dollar with direction.

The lack of stats will leave COVID-19 news and chatter from Capitol Hill in focus.

At the time of writing, the Dollar Spot Index was down by 0.03% to 90.212.

For the Loonie

It’s a quiet day on the economic data front, with no material stats to provide the Loonie with direction.

COVID-19 news from China and the U.S could further pressure crude oil prices that would weigh on the Loonie.

From the U.S, stimulus talks will also influence, however.

At the time of writing, the Loonie was up by 0.16% to C$1.2712 against the U.S Dollar.

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