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EUR/USD has risen to 1.0833 due to the Eurozone’s widened current account surplus and a quiet US market. The ECB wage data and Lagarde’s remarks suggest a measured easing stance, awaiting Q1 insights.
The US Leading Index and forthcoming FOMC minutes are expected to guide EUR/USD amidst varying expectations. The Euro extended its losses during the North American session, climbing above the 1.0800 figure after current account data in the Eurozone surpassed estimates.
The European Central Bank’s wage settlements indicator for Q4 dipped from 4.7% YoY to 4.5%, with ECB President Christine Lagarde stating that wage data will be crucial in deciding when to begin monetary easing. The market is pricing in less than 10% odds of a cut on March 7, rising to 45% April 11 and fully priced on June 6.
The US economic docket remains light, with the US Conference Board expected to reveal the Leading Index for January, which is estimated to plunge by 0.3% MoM. The schedule will gather pace with the release of the latest Federal Open Market Committee (FOMC) minutes and Fed speakers who could provide insight into the monetary policy outlook.
The pair has jumped to the upside, testing stir resistance at the 200-day moving average (DMA) at 1.0826.
