Anna 
During the London session, the EUR/USD pair exhibited cautious trading, lingering near significant resistance just below the 1.0900 level. This subdued movement comes as investors brace for the release of crucial economic indicators.
S&P 500 futures experienced a positive uptick in the European session, signaling a recovery in risk appetite among market participants. Meanwhile, the U.S. dollar index maintained a narrow range around 103.30 as investors awaited the release of the U.S. fourth-quarter GDP data scheduled for Thursday at 21:30 Beijing time.
Market expectations for the U.S. GDP growth in the fourth quarter stand at 2.0% year-on-year, a notable decline from the previous figure of 4.9%. Anticipation of slower growth is fueling speculation that consumer inflation expectations may decrease, potentially paving the way for a Federal Reserve interest rate cut in March.
Investor attention is not solely on U.S. GDP data; the focus will also shift to the core PCE price index for December, set to be released on Friday.
In the Eurozone, market participants eagerly await the interest rate decision from the European Central Bank (ECB) at 21:15. Projections suggest that the ECB will maintain the main refinancing operation interest rate at the existing 4.5%. ECB President Christine Lagarde’s recent remarks hinted at the possibility of interest rate cuts starting from late summer. Lagarde emphasized concerns about inflation not meeting the ECB’s expectations. The outcome of the ECB decision will likely influence the trajectory of the EUR/USD pair in the near term.
