The Euro continues falling. Overview for 12.11.2020

EURUSD is correcting after rallying earlier in November; the USD is regaining positions.

On Thursday morning, the major currency pair is correcting downwards. the current quote for the instrument is 1.1774.

The United States had a holiday yesterday, that’s why there were no statistics from there but it doesn’t mean that all investors had a day off. 

The chief executive officer of the Federal Reserve Bank of Boston Eric Rosengren believes that the next 6 months will be difficult and turbulent for the American economy due to the fight against the pandemic consequences. Despite the good news from pharmaceutical companies about vaccines, it will take much time to distribute them after they are ready. 

Any stimulus must be approved by the US Congress and that’s not as simple as it seems. Right now, the situation with budgetary and tax policies is quite clear but there are questions to the politics itself. Everything including the change of political power, the business downturn, and a slump in consumer demand will accompany the country’s economy for the next six months. 

Official forecasts from the FOMC relating to the GDP say that the USA is expected to lose 3-4% in 2020 but may add 3.6-4.7% in 2021. This possible growth is directly based on what the country’s authorities are going to do to stimulate the economy.