Market Fundamental Analysis for January 16, 2026 EURUSD
Event to pay attention to today:
16:15 EET. USD - Industrial Production Volume Change
EURUSD:
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EUR/USD on Friday, January 16, 2026, is trading near 1.1610, but the single currency’s position remains fragile. The US dollar is supported by strong US data and fading expectations of near-term policy easing: the market is increasingly pricing in a longer period of high rates, which keeps demand for the dollar steady from investors and companies hedging currency risks.
The backdrop for the euro is mixed. The European Central Bank emphasizes its readiness to keep rates at current levels as long as inflation stays close to target and no new shocks emerge. At the same time, a stronger dollar and competition in external markets weigh on the region’s export outlook, while talk of possible turbulence in global markets periodically brings back interest in the dollar as a safe-haven currency.
Over the day, the key driver remains US releases and commentary: any signs that inflation pressure is holding up will work against EUR/USD. The euro could find support if euro area data improves confidence in sustainable growth, but in the base case market participants remain inclined to hold dollars, increasing the likelihood of a moderate decline in the pair.
Trading recommendation: SELL 1.1615, SL 1.1635, TP 1.1525
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