The main currency pair has grown a little bit after the appearance of American investors, but the general tendency is still not in favor of the Euro.
The Eurodollar was sold for eight consecutive trading sessions and minor improvements after the appearance of overseas investors don’t change the whole picture a lot. The current quote for the pair is 1.1391. For the most of today’s trading session, the price was moving near 1.1370.
The statistics on several European countries published today haven’t supported positive sentiments among the market players. The German industrial production in March decreased sharply on a month-on-month basis, although it remained positive on a year-on-year basis. France also published the report about its industrial production, which increased in March only by 0.5% y/y.
Experts think that the market is way too serious about future actions of the FRS and overestimates their influence. According to the FRS representative, Mr. Neel Kashkari, the monetary policy pursued in the country at the moment seems quite appropriate, and the actions of the FRS may not influence the long-term conditions of the USA economy. The statistics may yet improve; the same can be said about the employment market. Here, the number is not as big as required, so it may be improved. The economic system recovers quite fast, but regulators have to continue expending some additional efforts.
In his speech, the same Kashkari used a very interesting phrase – “there are limits to dogma”. This is very familiar to the talks in the Russian economy about a new standard and changed reality, which have to be considered when making predictions. After the 200-2009 crisis, the world changed significantly, and the recovery that followed added even more changes. Of course, the idea of a new reality, dogma, and standard is completely different for the USA and Russia, but it’s difficult to settle down to something new in both countries.
However, one better pay attention to the FRS actions. After the statistics on the employment in the USA published last Friday, which turned out to be weaker than it was predicted, the number of those, who were confident about the rate increase in June, became smaller. Now they are just 8% against 11% last week. It appears that hardly anybody hopes that the rate will be increased in June, but still, the market isn’t ready to forget about this.
RoboForex Analytical Department
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