EURUSD Analysis – January-11-2014

EURUSD Analysis - January-11-2014

The EURUSD has been fluctuating, recently staying just over $1.09. This comes as the market processes remarks from several European Central Bank (ECB) officials. There’s a keen focus on an upcoming American inflation report. This report is pivotal, as it might indicate whether the US Federal Reserve will lower interest rates in 2023.

Luis de Guindos, ECB Vice President, spoke about the economy’s challenges. He didn’t sugarcoat things, suggesting a “technical recession” could hit in the second half 2023. His outlook for the immediate future wasn’t bright, partly due to inflation-related energy issues. He noted that last year’s inflation slowdown will likely hit a bump early this year.

Meanwhile, Francois Villeroy de Galhau, another ECB authority, shared insights on interest rates. He mentioned the ECB’s readiness to cut rates this year. But there’s a catch – they’ll do so only if inflation aligns with their 2% target.

Additionally, Mario Centeno warned that rate cuts might happen sooner than the ECB initially thought. He pointed out the lack of new inflationary pressures as a critical reason for this potential shift.

EURUSD Analysis - January-11-2014

EURUSD 4-Hour Chart