DOLLAR EFFECT ON EURUSD WEAKENS SLIGHTLY
The European Union (EU) announced that it has made a contract that will allow an additional 150 million doses of the Covid-19 vaccine developed by Moderna this year. In addition, BioNTech / Pfizer made a statement that it will give 200 million more doses of the Covid-19 vaccine to the EU. On the other hand, the announcement from the Prime Minister of Italy, Mario Draghi, that the relations with the European Union should be moved to a very positive tone increases the positive complacency on the European side. Thus, despite the dollar pressure on Euro assets, it is seen that the parity, which stretched down the 1.2050 level, again attacks the 1.21 level. In addition, we see that the ZEW economic confidence index for the Euro Zone and Germany exceeding the expectations is among the positive developments.
On the US side, it was stated in the minutes of the Fed's last meeting that the economic conditions in the country were far from the long-term targets and the supportive policy stance would be maintained until the targets are reached. On the other hand, the producer price index in the USA increased by 1.3 percent on a monthly basis in January. Retail sales, on the other hand, increased by 5.3 percent on a monthly basis in January, while industrial production increased by 0.9 percent on a monthly basis in January. Following this data, the appreciation in the dollar index increased the downward trend in the parity. However, it is seen that the increase in weekly unemployment benefit claims above expectations deteriorates the lucrative image of the dollar.
The acceleration of this momentum after the data announced in dollar assets, which started the week with the appreciation of value, triggered the rally towards 1.2015 support in the EURUSD parity. However, with the return from this level, the pair has entered a slight recovery movement, and pricing continues above 1.2090. If the pair breaks this level, it can be expected to accelerate its gains within the framework of 1.2140 and 1.2175 resistance. However, in pricing that may occur below 1.2050, decreases can reach 1.1950 support with 1.20 support.