The main currency pair is still under pressure after Janet Yellen’s comments and testing 12 months’ lows.
The Euro is being pulled down again, and it seems that nothing can stop this. The current quote for the EUR/USD pair is 1.0594.
Yesterday, Janet Yellen, the head of the Fed, reported to the Congress on the fiscal policy. In her comments, she informed the Congress that the regulator was ready for short-term increases of the rates, because it might be necessary in the nearest future. However, there ware no exact hints that it might happens during the December meeting of the Fed.
Nevertheless, the market doesn’t need them. There were a lot of such discussions in the past, so one more, give or take, really doesn’t matter. The Fed should start a stable cycle of stiffening the monetary policy. Later, a new American president, Donald Trump, will ask for it as well.
The statistics also speaks in favor of the interest rate increase. Yesterday, the USA published the Inflation Rate in October and it showed the fastest grow rate over the last 24 months. The Fed CPI target is still 2% and the country is one step closer to it.
Thirteen trading sessions of the Euro sales may transform into a correctional rebound as soon as the fundamental background allows it. The market would like to buy out some of the sales, but there are no reasons for a reverse so far.
RoboForex Analytical Department
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