The Euro is ready to consolidate. Overview for 28.07.2020

After updating another two-year high, the major currency pair started consolidating. 

EURUSD stopped skyrocketing and is trying to reach stability not far from its highs. The current quote for the instrument is 1.1726.

The USD has been once again failed by the number of new coronavirus cases in the USA. This growth is a rather alarming signal for market players. In addition to that, they are waiting for the US Federal Reserve meeting this week in order to understand how the regulator estimates the current stimulus measures or the country’s economy may require more. 

The regulator is expected to keep its monetary policy parameters intact, for example, the interest rate at 0.00-0.25%, and comment on the inflation issue. 

The statistics published yesterday showed that the Durable Goods Orders in the USA added 7.3% m/m in June after expanding by 15.7% m/m in May and against the expected reading of +7.0% m/m. The indicator itself is extremely volatile but any improvement should be considered as a positive factor. 

The components of the report showed that the Core Durable Goods Orders added 3.3% m/m in June after being +3.6% m/m in the previous month. Also, Orders for Non-Defense Capital Goods excluding aircraft jumped by 3.3% m/m after a 1.6% m/m gain in May.