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The return of the USD to its more classic safe-haven status makes the euro suffer. Lagarde’s speech could alleviate the weak position of the European currency, Yohay Elam from FXStreet reports.

Key quotes

“The greenback is marginally benefiting from US politics. The Democratic Party’s partial results from Iowa has shown that moderate Pete Buttigieg is on top, ahead of left-leaning Bernie Sanders and Elisabeth Warren. Markets prefer candidates with business-friendly policies.”

“President Donald Trump touted the robust US economy in his State of the Union Speech. Fresh figures will test this strength. The ADP private-sector jobs report is forecast to show an increase of 156,000 positions in January, below the substantial of 202,000 reported in December. The figure serves as a hint toward Friday’s official Non-Farm Payrolls.”

“Christine Lagarde, President of the European Central Bank, delivers a speech in which she may comment on the current economic situation and the bank’s strategic review.”