EUR / USD finds support close to 1.14, eyes on FOMC statement and Powell speech

• The EUR / USD seems to be breaking its winning streak.
• The US dollar index is clinging to modest gains greater than 95.80.
• ADP reports a stronger than expected increase in employment in the private sector.

The EUR / USD lost momentum in the second half of the day and fell to a lows of 1.1407 before moving into a consolidation phase before the FOMC announcements and the President's press conference Powell. At the time of writing, the pair was down 0.1% on a daily basis at 1.1422.

After a moderate trade action during the European session, the pair was put under further pressure as the US dollar strengthened amid optimistic data from ADP on the labor market, which 213,000 jobs in the private sector compared to 178,000 expected. After getting close to the 96 mark with market reaction, the Dollar Index erased a small portion of its gains and was up 0.08% on the day at 95.88.

Earlier in the day, data published by Destatis, Germany, showed that the annual CPI in Germany had dropped to 1.4% in January (provisional data). The estimate of badysts, which was 1.6%, thus weighed on the common currency. In addition, the monthly report from the European Commission found that the consumer confidence index had improved slightly, from -8.3 to -7.9, while service sentiment indices, Business Climate and Industrial Confidence had all retreated in January.

Markets do not see the FOMC announce a change in its key rate, which is now between 2.25% and 2.5%. As a preview of the FOMC meeting, "" In line with its latest communications, which focused on the central bank's wait-and-see approach, the Fed will remain on the sidelines this time. It will always be interesting to hear Jerome Powell's comments. at its first press conference of the year, "said NBF badysts.

• FOMC Overview: What are the 8 big banks expected from the January meeting?

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