Market sentiments are still against the “American”, although it may change until the end of the week.
The Eurodollar is in the demand for the second day in a row. Purchases are not very active, but the instrument continues to strengthen gradually. The current quote for the EUR/USD pair is 1.1276.
According to the published statistics, durable goods order volume in the USA in March increased only by 0.8% against the predicted number of 1.8%. The indicator, excluding defense order, decreased by 1% against the expected growth by 0.4%. Numbers in the report were weak and made “anti-Dollar” sentiments even stronger.
Today, they will publish statistics on the consumer confidence in the USA in April. The indicator is expected to decrease a little bit and equal 96.0 points against 96.2 points the month before. The closer this number to the predicted one, the better it is for the “American”.
Today the two-day meeting of the USA Federal Reserve System is going to start. Technically, no one is waiting for any changes in the monetary policy on the market – everything should remain intact. The time for changing the interest rate hasn’t come yet, the inflation signals are too weak, although the employment market is still a very strong economic foundation. However, this might be not enough. That’s why after the meeting, investors will be busy looking through Janet Yellen’s comments for any hints and references to the time of the rate increase.
May or June will be discussed as the perfect moment for changing the interest rate in the country. In this case, the second time might be at the end of the year, thus avoiding additional pressure on the economy.
However, when it comes to the Federal Reserve and market speculations about the rate, the logic is far behind investors and their emotions.
RoboForex Analytical Department
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