The main currency pair is falling significantly on Wednesday afternoon, the US Dollar is in demand again.
The EUR/USD pair is being sold aggressively on Wednesday afternoon. The current quote for the instrument is 1.1266. The daily decline is 0.35%.
According to the statistics published today, the German economy in the second quarter added 0.4% q/q (+1.7% y/y). This is less than the numbers in January-March 2016, when the increase was 0.7% q/q.
On the one hand, the warm winter this year kept the country’s construction sector operating actively. On the other hand, in the second quarter, volume of investments reduced significantly, but it’s quite normal after a quick start at the beginning of the year. The strength of Germany is still its foreign trading. The country’s economy is additionally supported by domestic consumption.
The market continues wondering what Janet Yellen, the head of the FOMC, is going to say in Jackson Hole. Everyone is still waiting for any hints on the future monetary actions of the regulator, but it’s very unlikely to happen. It would seem that the comments about the inflation and gross expenditures in the USA are more important this time – the more optimistic they will be, the more support the US Dollar will receive. Market expectations relating to the interest rate increase in September or December are very low, but they might change by the end of the week
RoboForex Analytical Department
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