Euro plummeted against the greenback during this week due to the risk sentiment amidst Ukraine crisis.
Concerns over Russia – Ukraine tussle eased temporarily during mid week as Kyiv put a diplomatic solution on the table, but of no use. Market stayed under pressure most of the week, However, it got a positive turn on Friday after Russian President Vladimir Putin said that “there were certain positive shifts” in negotiations with Ukraine. Whereas President Volodymyr Zelenskyy said that it would take time and patience to achieve victory.
The ECB meet the expectation by keeping the interest rates unchanged, However the central bank announced it would end the Asset Purchase Program in the third quarter of the year, sooner than anticipated. On the other hand, The Consumer Price Index of US soared to 7.9% YoY as expected, but still a multi-decade high and The central bank is expected to raise interest rates for the first time since 2018, and policymakers will likely hint at a faster pace of hikes in 2022.
In this week, Eurozone Retail sales monthly report on 7th March and US initial Jobless claim on 10th March favored the bullish trend whereas Eurozone Industrial Production monthly report on 9th March and US CPI monthly report on 10th March favored the bearish trend for the pair.
The major economic events deciding the movement of the pair in the next week are Eurozone Industrial Production monthly report at Mar 14, Eurozone ZEW Economic Sentiment Indicator, NY Fed Empire State Manufacturing Index at Mar 15, US Retail Sales monthly report, Fed Interest Rate Decision at Mar 16, Initial Jobless Claims, US Fed Industrial Production yearly report at Mar 17 and Fed Governor Bowman Speech at Mar 18.
EUR/USD Weekly outlook: