The Euro was “captured” by the Friday correction. Overview for 17.02.2017

The main currency pair is retreating at the end of the week, being corrected after two days of growth.

The EUR/USD pair is trading to the downside on Friday. The current quote for the instrument is 1.0645.

Generally speaking, nothing new happened. The statistics published by the USA yesterday evening was rather mixed, but the market focused its attention on the comments of Janet Yellen, the Fed chairman; we told you about this yesterday. Strong reports on the Retail Sales in the USA and the Fed’s willingness to revise the rate in the nearest future improved the market’s attitude to the USD, but the doubts about activities of the new presidential executive office make investors “hold their horses”.

Earlier, Donald Trump and his supporters said that the strong national currency may prevent their ambitious political and economic plans from being executed. That very moment, one started saying that the time of the strong USD was over. However, a bit later it became clear that verbal interventions alone won’t help. The American currency has been and will be the world’s reserve currency and, fundamentally, this makes it more attractive in the long-term.

Apart from this, the fact that the Fed didn’t deny its plans to revise the rate three times this year also supported the USD.

The next week will be shorter for American market – on Monday, the country will celebrate the President’s Day. After that, there will be not many statistical reports, which will probably allow the EUR/USD pair to remains in the range between 1.0610 and 1.0725.

RoboForex Analytical Department