The Euro found a reason to grow. Overview for 12.01.2017

The EUR/USD pair is moving upwards on Thursday, keeping the yesterday’s momentum.

On Thursday, the EUR/USD pair continues growing being influenced by the positive momentum. However, this growth is “a contrario”, just because the USD didn’t get enough support from the press conference of Donald Trump, the American president elect. The press conference took place yesterday and Trump did nothing but confirmed all the things he had said earlier, and told us nothing new about fiscal intentions and economic expectations. The current quote for the EUR/USD pair is 1.0637.

The major long-term driver for the USD is that Trump’s ambitious intentions to stimulate the American economy will produce an effect. This is why market players want to hear any new details and nuances about implementation of Trump’s plans after January 20^th.

However, everything that was heard yesterday by the market had been heard before: American companies, which has production facilities outside the USA should be ready for more taxes; trade and economic relations with both China and Mexico will be renegotiated. No more additional details, just “in general” and “overall” stuff. Despite the lack of any negative things, the USD fell a bit due to the absence of any new information as well.

Since the USD is moving close to its multiyear highs, it seems that the market has already placed a bet of Trump. The fact that his speech wasn’t the same as expected, it really doesn’t matter right now, but in the future everybody expects Trump to be more specific.

RoboForex Analytical Department