On Thursday, the main currency pair is trading upward, but investors are not too active - Janet Yellen will give a speech in the evening.
The euro/dollar is rising on Thursday afternoon and is currently trading around the 1.1133 mark. Activity in the market slightly declined compared with the first half of the day. It seems that the investors would like to hear the speech of the head of the Federal Reserve Janet Yellen – and only then trade with the facts at hand.
Morning statistics showed that German business sentiment improved in the last month. The IFO expectations index rose to 103.3 points against 101.5 points in the forecast. The index of current conditions eased somewhat and amounted to only 114 points with expectations of growth to 114.7 points. The index of overall business climate, according to calculations from IFO, in September was 108.5 points – and that is a little above the average forecast.
Thus, statistics are rather positive, but market participants are in no hurry to spend their energy. The scandal surrounding Volkswagen is gradually subsiding, and the European markets are getting back into balance.
It is difficult to say what exactly Ms. Yellen wants to talk about. It is unlikely that in this speech we will find indications - direct or covert - of the rate increase. The pressure on the Fed in this issue is growing, but the regulator is good at prioritizing. Therefore, it is thought, that the speech will focus on the assessment of external risks and their own inflation history. In the evening, the volatility of the euro/dollar could rise significantly.
RoboForex Analytical Department
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