The sharp sell-off in the greenback is lifting EUR/USD back to levels beyond 1.1500 the figure today, recording at the same time new multi-day peaks.
Spot has gathered extra steam on Wednesday following the FOMC event, where Chief J.Powell sounded more dovish than expected.
In fact, the Federal Reserve now looks more patient regarding its tightening cycle. The Committee will now consider domestic data as well as overseas fundamentals when comes to adjust its monetary policy conditions, expecting to see at the same time a better tone in risk sentiment and higher inflation.
The greenback quickly dropped to fresh 3-week lows in the wake of the FOMC gathering and is now threatening to extend the pullback to the 95.00 neighbourhood.
In the data space, German Retail Sales contracted at a monthly 4.6% during December, missing consensus. Spanish flash inflation figures now see consumer prices contracting 1.3% MoM in January and rising 1.0% from a year earlier. Later in the day EMU’s advanced Q4 GDP figures are also due.
Source : FX Street