FX Daily: Still Searching for a Dollar Pulse

The dollar continues to struggle for momentum despite better US macro data, while focus shifts to upcoming UK inflation data and ECB 'eurisation' efforts. Analysts expect short-term downside risks for EUR/USD and a potential March rate cut from the BoE.

Key Takeaways

• 1.The US Dollar is struggling to recover despite improved macro data, as market confidence in the greenback remains low.
• 2.Short-term valuation for EUR/USD suggests a break below 1.180 is more likely than a rally to 1.20.
• 3.UK labor and inflation data could pave the way for a Bank of England rate cut in March, weighing on GBP.

Table of Contents

• USD: Data and stock volatility in focus this week
• EUR: ECB pushing eurisation
• GBP: Big data week
• CEE: Not many reasons to leave the usual ranges

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