EUR/USD Has Managed to Gain Its Momentum After PMI Survey

January 27, 2023

After Tuesday’s abrupt decline, the EUR/USD pair has been able to gather steam again. According to the PMI data that was released on Wednesday, the GDP is anticipated to grow by 0.2%, whereas inflation is expected to decline by 1%.

While the German economy minister claimed that there are no signs of recession, investors were unaffected by this assertion. Meanwhile, the European Central Bank voiced its concerns over inflation. The hawkish comments from policy maker Gediminas Simkus helped the Euro hold its ground and investors are seen on the bullish side of the Euro.

The new policy announcement from Bank of Canada is due as of now, but is expected that the hawkish tilt can cause EUR/USD to stretch lower which may boost the US Dollar. However, if BoC puts its decision of raising their policy rate on hold, it can hurt the US Dollar.

Author Amsterdam