EUR/USD began new trading week under pressure.

EUR/USD began new trading week under pressure. Market players continue to play out statistical data, which were published on Friday.

In the EU, according to Friday data, the inflation rate declined from November's 1.5% to December’s 1.4% in line with the experts expectations. This is certainly a negative signal for the European currency, as inflation remains the main indicator that forces the ECB to maintain a soft monetary policy and pushes the time limits for raising the interest rate.

In the United States, the main attention was paid to the data on the labor market. The report turned out to be mixed, unemployment rate 4.1% for the second month in a row, and in December the number of people employed in the non-agricultural sector increased by only 148K (the previous two months were revised downwards), with a forecast of 190K. At the same time average wage growth rates corresponded to market expectations of 0.3% month-on-month and 2.5% year-on-year.

However, in the end, good data on wage growth in the US and previously published disappointing data on inflation in the EU outweighed and played in favor of sellers as the pair went into correction.

Today, the economic calendar is not rich with important fundamental news so the trading will surely pass calmly. A small increase in volatility is expected on the publication of data on retail sales in the EU and the performance of a number of FOMC members towards the end of the American session.

Technically, we see now that sellers, who are currently trying to sell down support at 1.1980-1.1960, intercepted the initiative. Technical indicators are still supporting these initiatives, which will allow the bears to continue downward movement towards the next local support in the area of ​​1.1930.

Fort Financial Services