EUR remains strong. Overview for 12.01.2023

On Wednesday, the market major remains vigorous. The current quote is 1.0750.

The market supports the EUR, and there are no reasons as yet for this attitude to change.

The US statistics from yesterday could hardly be called impressive. Optimism index of small business in December dropped to 89.8 points from 91.9 previously. This is no surprise because small enterprises turn out more sensitive and vulnerable in face of high interest rates.

The speech delivered by the Head of the Federal Reserve System Jerome Powell, delivered at the Riksbank conference, appeared more like neutral. Powell mentioned that the independence of the Fed from political institutions enhances the efficacy of its fight against inflation. This same independence makes the Fed abstain from interfering with climate change issues apart from some very general questions.

Today can be quite calm for EURUSD because no important statistics or crucial meetings are scheduled. Investors will be saving power for Thursday when the US issue their inflation report. All fluctuations will be concentrated there.