The Euro resumed falling. Overview for 19.06.2019

19.06.2019

On Wednesday morning, the major currency pair reached its two weeks lows. 

EURUSD is being sold again. The current quote for the instrument is 1.1190.

The European currency weakened yesterday after the comments from the ECB Governor Mario Draghi, who said that the regulator might stimulate the Euro Area economy much more in case the inflation didn’t improve. This means that the ECB may consider cutting the benchmark rate. Investors’ response to his words was quite obvious – they started selling the Euro. 

In the evening, the USA are scheduled to report on the Crude Oil Inventories, which may show -1.5M 

The key highlight of the day will be the US Federal Reserve meeting. The regulator is not expected to decrease the rate, but may hint at possible rate cuts in the nearest future. This topic has been discussed for a couple of weeks, it was confirmed by the regulator representatives, so market players are expecting the Fed’s monetary policy to change soon. Right after the meeting, the Fed Chairman Jerome Powell will hold a press conference. 

The most part of policymakers believe that there is no sense in cutting the rate right now. It should be done (or forget about it), but maybe a bit later, after the summit in Osaka. However, if the thing go wrong, the rate may be decreased as early as during the July meeting. 

In the evening, volatility in EURUSD may significantly increase.

Attention!

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.