The “Eurocorrection” continues. Overview for 16.02.2017

16.02.2017

The ascending correctional impulse in the main currency pair, which started yesterday, continues.

So, the EUR/USD found some reasons to rebound and is still being corrected slowly. The current quote for the instrument is 1.0643.

Some of the statistical reports from the USA, which were published yesterday, were positive, others – negative, but the market was waiting for the second speech of Janet Yellen, the Fed Chairman, in order to define priorities finally. And the monetary politician, who had inspired the USD supporters earlier, made them come down to earth. In her speech, she said that the economy was recovering fast enough, but the total growth over the last year was “disappointing”.

This very last phrase caught investors’ attention. Yellen’s opinion is confirmed by the Preliminary GDP in the fourth quarter 2016, which were published earlier and turned out to be rather weak in comparison with the third quarter reading. It is clear that the GDP parameters are usually revised twice at least and each time the revised reading will be better that the previous one – this is the way it happened in the USA in the last few years. However, to know about this and to hear the Fed Chairman say it – these are different things.

At the same time, market expectations relating to the USA interest rate increase improved. Right now, the market is 27% sure that it will be changed in March against 17.5% earlier. In theory, it should be in favor of the USD after the main currency pair completes the current correction.

Today, the USA continues publishing its macroeconomic reports. One should pay attention to the Initial Jobless Claims, the Housing Starts, and the Building Permits in January.

 

RoboForex Analytical Department

 

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Forecasts presented in this section only reflect the author’s private opinion and should not be considered as guidance for trading. RoboForex bears no responsibility for trading results based on trading recommendations described in these analytical reviews.