The main currency pair is falling in the second half of Wednesday despite weak data on industrial production from the USA.
It’s easy to explain – the market is focused on the two day’s meeting of the USA Federal Reserve System, which will end today. No one expects something fundamentally new, but the comment during Janet Yellen’s press conference may provide investors with directions of further movements. Probably this is the reason why the Eurodollar is retreating – investors expect that Yellen will be committed and fairly specific in her statements. The current quote for the instrument is 1.1065; sales became more active after the noon.
The USA has already published one of the macroeconomic report planned for today. Industrial production in the country decreased by 0.5% m/m in February against the background of decline in oil output – considering that the average forecast predicted the decrease by 0.3% m/m. Manufacturing sector increased by 0.2% m/m last month after January’s increase by 0.5% - there is a rising impulse, but it doesn’t seem to be very strong.
Weak overseas demand and mood swings on the currency market won’t let industrial production in the USA to show stable rates of growth. In order to increase production volume, there must be a necessity the final product. This necessity isn’t growing at least, and this is quite negative.
The markets will win back this report, just like the others to be published today until the end of the trading session, a bit later, when the tension regarding the FRS meeting results reduces. The evening may be quite active for the Eurodollar.
RoboForex Analytical Department
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