EUR/USD remains within the broad consolidative theme in the second half of the week amidst scarce volatility and cautiousness over the outcome of the US-China trade talks.
EUR/USD looks to trade for direction
Spot remains sidelined at the end of the week and is tracking the generalized lack of direction in the global markets, while investors keep looking to headlines from the US-Sino trade talks in Washington, which are due to conclude today.
The shared currency stayed apathetic following the ECB minutes on Thursday, where the Council acknowledged the ongoing slowdown in the bloc could last longer than expected, adding that more time and data is needed to gauge whether it is temporary or it has more structural components.
In the data space today, German final Q4 GDP showed the economy expanded 0.9% on a yearly basis during Q4, matching the preliminary readings. Later in the session, the German IFO survey is due seconded by final January inflation figures in the euro area and the speech by President M.Drgahi in Bologna (Italy).
Across the pond, Fedspeak will be in centre stage later today, as several FOMC governors will take part in a panel to discuss the balance sheet in New York.
What to look for around EUR
The shared currency continues to look to developments from the US-China trade talks for near term direction as well as any headlines from the effervescence on the US-EU trade front. Disappointing advanced prints from manufacturing PMIs in Germany and the euro bloc plus a ‘reality check’ from the ECB minutes appear to have exacerbated concerns over the deterioration in the bloc’s fundamentals and casted further shadows over the probability of any action on rates from the ECB this year.
Source : FxStreet