The EUR/USD is consolidating. Overview for 18.09.2017

The main currency pair is trading calmly at the beginning of the week; the market doesn’t make any sudden movements before the Federal Reserve meeting.

The EUR/USD pair is trading pretty quiet on Monday. The current quote for the instrument is 1.1948.

The statistics published by the USA last Friday counted against the USD. The Retail Sales lost 0.2% m/m in August – the indicator has been falling for the second consecutive month. For this time of the year, the situation is pretty unusual. In June and July, it also was not too good, but at that time the indicator was supposed to improve during the “sales season”. So far, it hasn’t worked.

Apart from this, the Industrial Production lost 0.9% m/m in August against the expected reading of +0.1% m/m. This decline has been the first this year and the biggest over the last 8 years.

Taken together, these Friday reports counted against the USD. A bit later, the situation with the EUR/UISD pair got stabilized, because investors preferred to lock in profits before the weekend. On Monday, the situation is looking pretty calm and clear: the market is waiting.

On Tuesday, another two-day meeting of the US Federal Reserve. Investors are not expecting the regulator to increase the key rate right now, but they are quite interested in how the Fed is going to comment on the latest inflation reading (1.9% in August, very close to the regulator’s target) and the mixed numbers shown by other macroeconomic indicators. Any comments that may imply that the Fed is going to postpone the key rate increase will surely “hit” the US Dollar.

RoboForex Analytical Department