The USD is falling quickly. Overview for 10.01.2019

10.01.2019

The major currency pair is keeping its positive momentum on Thursday; the USD is under attack.

EURUSD continues growing on Thursday afternoon. The current quote for the instrument is 1.1553, the highest since October 17th 2018. 

The USD started plummeting yesterday, when FOMC members told investors several quite complicated and controversial things. At first, the FOMC representative Charles Evans from Chicago said that the regulator might take a break in rate hikes due to elevated uncertainty of economic outlooks. Evans was supported by Eric Rosengren from Boston, who believed the actual rate was okay for the current economy. On the other hand, there were opinions that the rates might be increased after the situation was clarified, which might happen quite soon. 

However, most of all investors responded to the Fitch report, according to which it was ready to revise the USA rating if the Government Shutdown in the country took too much time. By now, several agencies in the American government hasn’t been operating for 18 days, because there is still no decision on financing. Policymakers have been arguing about the Mexican border issue and the Republicans are winning so far. 

The Government shutdown itself in the USA is nothing unusual or surprising, it has happened 18 times, but this one is the longest. The previous case, in January 2018, the documents were signed in less than 2 days, thus preventing market players from panicking.

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.

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