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EURUSD overview 27.01.2021

EURUSD crushed by central bank comments.

EURUSD under strong bearish pressure today after ECB governing council member Klaas Knot said the European central bank was monitoring the currency closely and the bank has room to cut its deposit rate further – to counter the appreciation of the euro. This is the first mention of the possibility of the rate cut from an ECB policymaker – a move that seemed highly unlikely until recently. This is putting immense pressure on euro. The pair is also pushed down by the wide scale dollar gains as the markets are waiting for comments from Federal Reserve Chair Jerome Powell, who is likely to reject any calls to taper down the bond-buying scheme amid on-going economic hardship in USA.

Expect sellers on upward corrections.

Next support to watch – 1.2105

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