The main currency pair is trading upwards on Tuesday; investors are responding to a strong report on the GDP.
On Tuesday afternoon, the EUR/USD pair is moving faster than over the previous six trading sessions. The current quote for the instrument is 1.1725.
A good reason to by the European currency was today’s excellent preliminary report on the Eurozone’s GDP in the third quarter. The report confirmed that over the last three months, the European economy expanded better than the American one and it hasn’t happened for quite a long time. The Eurozone’s GDP in the third quarter 2017 increased by 0.6% q/q and 2.5% y/y.
In September, the Industrial Production lost 0.6% m/m though, the same as expected, after adding 1.4% m/m the month before. On YoY, the indicator expanded by 3.3%.
This strong GDP report may significantly improve sentiment of the ECB, which earlier announced that it was going to reduce the QE program twice. Starting January 2018, the program volume will be 30 billion instead of 60 billion earlier. However, this strategy will continue as long as the economy needs it.
Later in the evening, there will another interesting news for the EUR/USD pair. In addition to that, Janet Yellen, the Chairwoman of the USD Federal Reserve, is scheduled to speak. Her speech is very likely to attract investors’ attention.
RoboForex Analytical Department
Forecasts presented in this section only reflect the author’s private opinion and should not be considered as guidance for trading. RoboForex bears no responsibility for trading results based on trading recommendations described in these analytical reviews.