As long as the macroeconomic calendar is empty, the Eurocurrency is slowly growing against the US Dollar.
This Monday is a surprisingly quiet day for the currency market. The macroeconomic calendar is empty, there is hardly any news, monetary politicians are silent. This might be the calm before the storm as tomorrow another two-day meeting of the USA Federal Reserve System starts, and the market is just saving its strengths. The current quote for the pair is 1.1266.
The attention has already been switched to the FRS meeting. The meeting will be over on Tuesday evening, at the same time investors will be informed about the regulator’s opinion relating to the current state of the European economy and the interest rate. Expectations that the rate might be increased during this meeting at the moment are close to zero, while the expectations about July are more optimistic and show that almost 30% of investors are confident of the rate increase.
The Federal Reserve wasn’t supported by the May statistics, and the inflation numbers will be published later this months, after the meeting. Moreover, it would be nice to see preliminary calculations of the USA GDP increase over the second quarter of 2016, which is over in two weeks. With more precise numbers on hands, it would be easier for the FRS to make a right decision. Probably, this is why one shouldn’t wait for a miracle on Wednesday.
It might result in a further weakening of the American Dollar, especially if the FRS doesn’t specify exact dates. Any specifics will be in favor of the US Dollar. The market needs details and nuances – in this case, there will be fewer emotions.
RoboForex Analytical Department
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