The Euro updated its highs. Overview for 27.07.2020

The major currency pair is starting the final week of July by updating its highs. 

EURUSD is skyrocketing and not afraid of setting new records. The current quote for the instrument is 1.1710.

The US Federal Reserve pumped enough money into the market and that’s putting pressure on the “greenback”. This week, the American regulator is scheduled to have another meeting, although it’s quite clear that the time for new fiscal moves hasn’t come yet. However, the Fed may change the tone of its comments regarding inflation. 

The Fed’s inflation target remains the same, 2%. At the moment, the Consumer Price Index might as well increase more actively, thus helping the regulator to change the target, and hence, influencing market sentiments.  

At the same time, market players are worried about the future outlook of the American economy. Even if the statistics confirm that the country needs another package of stimulus measure (isn’t it all too much?), there is no guarantee that it will be steered into the right place where it is really needed. And that’s another negative factor for the “greenback”.

Investors are focused on the US-Chinese geopolitical conflict, which doesn’t bode well for the currency market. However, right now, they are just monitoring but noе taking any abrupt moves.