The main currency pair remains near the highs of five months, as the market is nervous about what is happening in the United States.
The euro/dollar is trading down on Wednesday afternoon, but it makes little difference in the medium term. The current quotation of the instrument is 1.1283. Yesterday the main currency pair touched the highs from the end of October at around 1.1337. A good result, given that investors are torn between risk aversion and doubts about the stability of the US economy and currency.
This morning statistics on France were released. According to the data, the volume of industrial production in December fell by 1.6% m/m, with expected growth of 0.2% m/m. Yearly, as of December industrial production in the country has added only 2%. The trend in the index is very unstable. Equilibrium can’t appear here: the demand is unstable domestically and abroad.
By the way, France and Germany have again raised the question of the need to create a unified Ministry of Finance. For the third time. This topic was raised in 2008, then in 2012. Now the discussion has expanded: the countries are offering to create not just a single Ministry of Finance, but also a political body, which could make quick decisions for the allied countries. And, if the topic with the Ministry of Finance is viable - difficult but realistic, then with political integration the idea will fail miserably.
With regard to the doubts about the stability of the market in the US, the recent motley statistics only increases tension. Today the head of the Federal Reserve Janet Yellen is making a speech, so the evening will bring an increased level of volatility in the markets. Investors will be looking for any indication of further fiscal steps in the words of the monetary politician. However, Yellen, I think, will try as much as possible to gently avoid all sharp corners.
RoboForex Analytical Department
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