The pause between sales of the EUR/USD pair was very short yesterday; the instrument is under pressure once again.
The EUR/USD remains under the “bearish” pressure on Friday. The current quote for the instrument is 1.0895. Sellers couldn’t reach the June’s low yesterday, the trading session was over at 1.0913, while the bottom was at 1.0911. This morning, bears pulled themselves up, broke the bottom, and reached a new low over the last six months. And it seems that bears have enough strengths and potential to continue pushing the main currency pair to the downside.
Mario Draghi’s comments after the October meeting of the ECB that no one was going to either stop the QE program or increase it significantly suggested that the program would be extended even after March 2017. The longer the active period of the program is, the less stable for the European currency is going to be. This is exactly what is affecting the market right now.
Worldwide strengthening of the USD also makes its contribution. At the time goes by, investors are more and more confident that the interest rate will be increased in December. Comments from Mr. Fisher, the Fed representative, made yesterday were also in favor of this. Mr. Fisher said that he expected the monetary policy to be tightened later this year.
Today, there are no important reports, so the market will probably continue to overthink yesterday’s news. It means that the Euro will still be “at the end of a gun”.
RoboForex Analytical Department
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