The main currency pair is very sensitive in its respond to representations of American monetary politicians relating to the decisive meeting of the FRS in June.
On Wednesday morning, the EUR/USD pair is trading near 1.1289. Investors started selling the main currency pair yesterday evening, as if the market was waiting for comments from Mr. Lockhart and his colleague =Mr. Williams in order to make a move. The most of the published statistics was positive, but it wasn’t the statistics that influenced “bears”.
At first, the attention of the currency market was drawn by the representative of the USA Federal Reserve System, Mr. Williams, who stated that the interest rate would be increased this year twice or three times. Investors knew about “twice” for a long time, and a possibility of “three times” made them happier. Later, Mr. Lockhart in his speech also mentioned two or three possible increases of the American rate. According to his words, all meeting of the FRS are held in a very lively manner, that’s why one can not leave out a possibility of the regulator’s decisive actions even in June.
According to Lockhart’s estimations. The inflation is moving towards the FRS’ targets. The day before, the USA published revised statistics on the CPI in April, and the data clearly showed that the inflation dynamics is getting better.
So far, everything is looking quite smoothly; the Eurodollar is being sold, but slowly. Maybe bears need another driver to become more active. If so, investor will look for it carefully today.
The predicted trading range for the EUR/USD pair for today is 1.1275 – 1.1345.
RoboForex Analytical Department
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