The Euro is taking advantage while the USD is hesitating. Overview for 17.11.2017

17.11.2017

The main currency pair is still growing a little bit while political risks are recovering.

The EUR/USD is trading to the upside on Friday. The current quote for the instrument is 1.1787.

Investors’ response to the statistics published yesterday was quite neutral. The Inflation Rate in the Eurozone expanded by 1.4% y/y in October, just as expected. The Core CPI in the same month added 0.9% y/y. Reports from the USA were rather mixed and didn’t make the USD more attractive for investors, because they varied a lot. The Import Prices increased only by 0.2% m/m in October after adding 0.8% m/m in the previous month and against the expected reading of +0.4% m/m. Later, the Industrial Production report restored the balance by expanding by 0.9%, which is better than both previous and expected numbers.

Today, investors should pay attention to the speech of Mario Draghi, the ECB Governor. If he speaks about future fiscal activities, the Euro will find a reason to strengthen. In the evening, the German Deutsche Bundesbank President, Jens Weidmann will speak as well. Later, the USA are going to report on the Housing Starts and Building Permits in October.

However, there is one thing, which is now more interesting for investors than speeches delivered by monetary politicians and statistics. It’s a new round of flare-up between Russia and the USA. Robert Mueller, the Director of the Federal Bureau of Investigation, subpoenas members of Donald Trump’s pre-election campaign, who are suspected of cooperating with Russia during the elections of 2016. It makes investors withdraw from the USD and turn their attention to “safe haven” assets.

 

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.