On Wednesday afternoon, the main currency pair continues falling and may soon test the July’s lows.
The EUR/USD pair is under significant pressure for the fourth day in a row. The current quote for the instrument is 1.1020; the daily decline is 0.3%. Yesterday, the pair reached the August’s lows and today is moving towards the July’s “bottom”.
Investors’ demand for the USD makes the main currency pair go down. After the comments made by the Fed’s representative, Mr. Evans, about stability of the American economy and a good time in December for increasing the rate, the interest to the American currency improved significantly. Now no one is worried about the September report on the US labor market, which fell short of expectations while the lobby is increasing pressure on the Fed.
Today’s statistics from the Eurozone might be a reason for a short pause in sales, but the market players aren’t willing to slow down. Meanwhile, the industrial production in August added 1.1% m/m after falling by 0.7% m/m in July. On a year-on-year basis, the indicator increased by 1.8% after decreasing by 0.5% the month before.
Germany reported on producer prices today, which slowed down their decline. The indicator fell by 0.3% y/y, slower than it happened before. On a month-on-month basis, the number added 0.4%.
This evening, the market’s attention will be focused on the minutes of the latest meeting of the USA Fed. If investors find any signs of the rate increase in December, the USD will strengthen to a greater extent.
RoboForex Analytical Department
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