They stopped selling the Euro. Overview for 28.10.2019

On Monday, EURUSD stopped falling; right now, it is consolidating close to week’s lows. 

The major currency pair is quite calm early in the week, but there will be a lot of reasons to be more active later this week. The current quote for EURUSD is 1.1088.

There will be several events that may influence the Euro behavior. First of all, it’s a meeting of the US Federal Reserve. The key anticipated thing is whether the regulator is going to continue cutting the rate or not in the future, that’s why investors’ attention will be focused on the comments following the meeting. As for the rate decision itself, no one has any doubts that the regulator will decrease it down to 1.50-1.75% this time. However, this was already shown up in EURUSD prices, so there might be no significant fluctuations at all. 

Secondly, this Friday the ECB Governor Mario Draghi will step aside from his position in favor of Christine Lagarde. Market players do not expect any serious changes in the regulator’s policy, but they are surely eager to hear first comments from Lagarde, a new head of the ECB, who is a very experienced monetary policymaker. Mid-term market expectations imply that the regulator might have to change its monetary policy earlier than predicted before due to a decline in the Euro Area GDP and a lot of targeted problems in several European countries. 

There will be some statistics worth paying attention to. For example, the USA is scheduled to report on the GDP for the third quarter. Although the report isn’t likely to contain any numbers to impress investors, the market will be volatile whatever the case.