The Euro is still on a roll. Overview for 25.06.2019

This morning, the major currency pair updated its three months lows; right now, it is still rising. 

EURUSD is keeping its positive momentum. The current quote for the instrument is 1.1410.

Market players are keeping an eye on a possible rate cut by the US Federal Reserve this year. More to that, it may happen more than once, although early in the year investors were expected the rate to be raised three times. It is based on the escalation of the conflict between the USA and Iran. In addition to that, investors are pretty tensed in anticipation of the G20 summit, where they expect the USA and China to come to some kind of settlement. 

All these factors are currently against the USD due to high risks. 

Tuesday’s macroeconomic calendar is a bit busier than yesterday. In the evening, the USA are scheduled to report on the HPI in April, which may add 0.2% m/m (better than in March) and the New Home Sales, which may go from 673K in April to 686K in May. The US real estate market has been quite strong recently and that’s very good for the American currency.

Also, the USA will report on the CB Consumer Confidence for June, which may turn out to be an unpleasant surprise. The indicator is forecasted to go from 134.1 points in May to 132.0 points in this month. A slight decline is not critical, but it still shows that American consumers are becoming more careful when it comes to spending. 

Later in the evening, the US Federal Reserve Chairman Jerome Powell is going to deliver a speech. No one knows what he is going to speak about, but it’s very unlikely that a week after the regulator’s June meeting Powell will be focused on its monetary policy aspects.