The EUR/USD pair started this week with a correction. Overview for 22.01.2018

On Monday morning, the main currency pair is trading to the downside; the Dollar is getting stabilized after a short-pause in the US government activities.

The EUR/USD pair is being corrected after volatile movements. The current quote for the instrument is 1.2230.

Today’s headline is the pause in the US government activities. Last Friday, Republicans and Democrats couldn’t reach a consensus for immigration policy and military spending and, as a result, negotiations concerning the entire political funding in the country stalled.  

Such “circus” happens in the USA from time to time. Last time it was in 2013. Over the last 50 years, there have been 17 times the White House and the government stopped their activities. The reason was always the same: one party pursues its own interests and “runs into” other political party. As a consequence, periods during which the government agrees on political funding increase. These problems will be surely solved, it’s just a matter of time.

Investors’ response to this is pretty calm: they understand that it’s a temporary phenomenon, which will not change anything seriously for the main currency pair. Investors have already got used to such situations, when the controversy between Republicans and Democrats goes to ridiculous lengths, so they go easy on it.

There won’t be much important statistics for the EUR/USD pair today, that’s why investors will probably continue watching the “American drama”.

RoboForex Analytical Department