The major currency pair is moving away from its local highs; news are in are in favor of the USD.
EURUSD is being corrected to the downside on Wednesday morning after an Impressive growth earlier. The current quote for the instrument is 1.1410.
At the same time, the USD remains very sensitive to the comments from American policymakers that appear from time to time. For example, the FOMC member James Bullard told yesterday that the country’s economy seemed to need preventive rate cut. In his opinion, the inflation under current conditions is looking too stable and steady and needs to be supported. However, according to Bullard, cutting the rate by 50 basis points at once in July will be too much. Investors took this information as an intention of the regulator to decrease the rate slightly just once this year.
A bit later, the US President Donald Trump said that the USD was too strong and one of the ways to handle it is to cut the rate. One way or another, everything is turning upon the key rate, but it is hardly a universal panacea.
In the morning, Germany will report on the GfK Consumer Climate for July, which may drop to 10.0 points after being 10.1 points the month before. Overall, this is a neutral report for EURUSD.
In the evening, the USA will publish the Durable Goods Orders for May, which is not expected to change after losing 2.1% m/m in April. The Core Durable Goods Orders may add 0.1% m/m. the report itself is very volatile, because it is significantly influenced by the components, transport – cars, ships, and planes. That’s why dramatic changes in the indicator are quite usual. It should be interesting to see the capital goods orders, because it may be considered as some kind of business sentiment to show whether businesses are going or not going to invest.
Later, the USA are scheduled to report on the Wholesale Inventories, which may add 0.6% m/m in May after expanding by 0.8% m/m the month before. The report is preliminary, that’s why it shouldn’t influence EURUSD too much.
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.