After the officials in Hubei province have changed the way they are diagnosing and reporting cases, a significant change occurred in the number of cases. The protected expectation that the weakness of the virus on economies can be compensated in a short time leads to the preservation of risk appetite in the markets. Following this development, it is seen that the Dollar index reached the highest level in 4 months and caused serious sales pressure on the Euro side. Thus, EURUSD exceeded the critical 1.09 level of the pair, withdrawing up to 1.0830 support. While the euro side increased the depreciation after the contraction in industrial production in December, we saw that inflation in Germany increased by 1.7 percent in line with the expectations.
On the UK side, Rishi Altar replaced Minister of Finance Sajid Javid that resigned from his post after the dispute with the Prime Minister. With this development, there was not much effect on the Euro side of the appreciation on the side of the Sterling.
If we look at the US side, the industrial and manufacturing production in the USA will be followed today in terms of the mobility of the Dollar assets that accelerate their earnings with the positive course of the macroeconomic data. Moreover, it is expected that the tariffs applied under the first stage trade agreement signed between the USA and China in January will be reduced. It is seen that the weakness in the Chinese economy caused by the coronavirus has brought the USA side to an advantageous position within the scope of trade wars, thereby strengthening the positive effect on the Dollar side.
We saw that sales gained momentum in EURUSD parity with the increase of dollar positive euro negative scenario. Especially in the withdrawal movement up to 1.0830 level, the pair can be expected to accelerate with 1.08 support. Thus, we can see that the levels that were last tested in April 2017 came to the agenda again. Below this level, 1.0750 support can be followed as the next movement area. We are watching the rises with 1.09 resistance closings due to the decreases experienced by the pair for a while from 1.08 support.