On Tuesday evening, the main currency pair retreated by almost 100 pips; bears are attacking.
The Eurodollar got cheaper sharply on Tuesday evening. The current quote for the pair is 1.1246; today’s high was 1.1348.
It seems that there are no reasons for such a “violent” changes in sentiment. But during his speech, Mario Draghi, the governor of the European Central Bank, emphasized that the QE program was expected to stabilize the inflation and recover the economy. Judging by the macro statistics, the plan hasn’t been executed in full yet. Well, currencies still have enough time.
Draghi’s comments became known almost at the same time as the speech of Janet Yellen, the head of the FOMC. According to her words, the USA’s economic outlooks are still surrounded by a great uncertainty, and the United Kingdom’s exiting the European Union may carry serious financial consequences. Yellen sees more risks for the economy: low production, slow growth rates of employment, not too active investments in companies.
Monetary politicians didn’t tell market participants anything new, but their comments rocked the idle trading day.
In addition to that, we can’t exclude a possibility that the reason why market is changing the direction again is brexit. Although investors may seem to be sick and tired of this topic, it will remain a topical subject until late Thursday or early Friday.
RoboForex Analytical Department
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