No important events are expected today.

The Euro finished the first five days of 2023 on a minor note and this week the European currency has a good chance to make up for lost ground. A strong appreciation of the Euro is not expected today and tomorrow as the key event of the week is the inflation data release in the USA which is due on Thursday, January 12.

As wage growth in the USA has been decreasing for the fourth month in a row, and money supply dynamics shows a steep peak, we will see a decrease in inflation on Thursday, which will make investors even more talk about the end of the Fed’s interest rate hike cycle, which is in turn negative for the dollar, as it was the aggressive Fed rate hike in 2022 that provided a strong growth for the American currency. In my opinion, the market will start to gain back this event already now and at the end of the week the dollar weakening will accelerate.

Recommendations: Buy 1.0660/1.0630 and TP 1.0714.