Sales in the EUR/USD pair quieted down, but it’s possible that bears just decided to take a break.
Bears took a time out, although the technical chart doesn’t exclude a possibility of the rend reverse. So far, the market is quiet; the pair is mostly trading around 1.0886.
According to the statistics published today, the German Ifo Business Climate, in October increased up to 110.5 points after 109.5 in September and the same predicted number. The components of the report indicate that the current business situation improved up to 115.0 points after the previous number of 114.7 points, and the business expectations increased up to 106.1 points against the predicted number of 104.5 points.
Well, if the business climate in Germany improved and stabilized, France has other numbers and sentiments. The business confidence in October dropped to 102 points after 103 and 101 points in September and August respectively. France has more serious and complicated economic problems, which are very difficult to be solved quickly.
In addition to that, positive expectations in relation to the future fiscal actions of the Fed are also in favor of the USD. For example, Mr. James Bullard, the Fed representative, said yesterday that the American regulator needed to increase the interest rate significantly only once, and then it would have to hold it there. According to his words, there is no need to increase the rate on a regular basis and he is going to support the idea of the rate increase during one of the next meetings. .
RoboForex Analytical Department
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