The EUR/USD is waiting for Trump’s speech. Overview for 20.01.2017

The main currency pair remains “in the black” on Friday, but crucial movements may start along towards evening.

At the end of another January week, the EUR/USD pair is in good spirits. The current quote for the instrument is 1.0677; the activity is quite low.

The market is saving its strengths before the inauguration of Donald Trump, which is set to take place in the evening. After the procedure, the newly elected American president is going to deliver his first official speech, which may contain new long-term drivers for the currency market. The tone of the first presidential directives (at 2:00 PM GMT) will surely influence trading sessions at least for the next week.

The first meeting of the European Central Bank, which was over yesterday, went calmly and within sensible bounds. The interest rate wasn’t changed, just as expected, and remained at zero. Obviously, the time for changing the rate hasn’t come yet. In his comments, Mario Draghi, the ECB Governor, said that the European regulator had enough fiscal tools for exerting influence on the economy and would use them if necessary. Inflationary expectations remain conservative for long term, although right now they are positive.

On the whole, statistical reports published by the USA yesterday were positive. The weekly Initial Jobless Claims was 234K after the previous reading of 249K and against expectations of 252K. The Building Permits in December 2016 remained the same as in the previous month and the Housing Starts increased and was 1.23M against expectations of 1.19M.

RoboForex Analytical Department