EUR/USD Forecast: How ECB Noise Could Impact The Euro’s Performance

The US dollar weakened in value as bond yields dropped due to speculation surrounding the ECB. Italy’s 10-year note yield fell more than 15%, resulting in the US Treasury 10-year benchmark rate decreasing to 3.52% from its previous intraday high of 3.58%.Euro Zone data was a mixed bag. Germany’s December Harmonized Index of Consumer Prices (HICP) came in at 8.6% year-on-year growth. Figures from the January ZEW Survey in the country revealed that economic sentiment had risen to 16.9, which was higher than expected. It was even better at 16.7 for the Euro Zone.

Unfortunately, the Current Situation Index dramatically dropped to -58.6. Meanwhile, The NY Empire State Manufacturing Index for January in the US exhibited a sharp decrease from -11.2 in December to -32.9. This Wednesday, the EU will give us the finalized data of December’s Harmonized Index of Consumer Prices (HICP). It is predicted to have gone up 9.2% year-over-year.