The main currency pair is strengthening during the first trading session of November, while the market’s attention to the USD faded away a bit.
On Monday, interest in the USD died away quickly. The market is waiting for the results of the Fed’s November meeting and is positive that everything will be calm and quite this time. In fact, there are no other options right now: the interest rate is expected to be increased only in December. The Fed won’t take any actions before the main political event of the year, presidential elections in the USA. The current quote for the EUR/USD pair is 1.1021, the highest over the last couple of weeks.
Nothing else is going on. During the previous week, the USD was supported by buyers in anticipation of the regulator’s meeting, but right now the market situation is completely different. Everyone expects the Fed to particularly specify its intentions to increase the rate in December. Everything else is already included in investors’ mid-term expectations as something inevitable.
It’s rather logical that the Fed prefers not to worry investors and “rock the boat” on the currency market before presidential elections. All in good time.
If we take a look at the current situation with the EUR/USD pair, it appears that the current growth is a short-term one. No matter who will take charge of the Oval Office after November 8th
, the USD will be bought. The only question is for how long, that’s all. If Hillary Clinton wins, the USD will be in demand for not so long. If Trump wins, bears may take over the EUR/USD pair for quite a long time.
RoboForex Analytical Department
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