The euro reversed its trend abruptly and fell below 1.2300 again.
The disappointing economic numbers from Germany triggered the euro’s decline today. The euro was down more than 100 pips against the U.S. dollar before it recovered a bit. The German Producer Prices fell 0.1% in February. In addition, the ZEW Survey indicated that the economic sentiment deteriorated in Germany in March. The index came in at 5.1, which was down from the previous 17.8. The EU economic sentiment index came in at 13.4, down from the previous 29.3.
The Fed began its two-day meeting today. The market has already priced in a rate hike; however, the traders are looking for any indication from the Fed chair, Powell, whether there will be 3 or 4 rate hikes in 2018. This will determine the tone for the greenback.
Yesterday, the U.S. equities plunged because of the Facebook data-leak incident, which also sent the euro higher against the dollar. The U.S. equity market has stabilized. The Dow Jones Industrial Average was up more than 100 points today.
The previous week’s result can be found here.