The main currency pair was trading close to 1.18, but the USD managed to strengthen thanks to the statistics.
On Wednesday, EURUSD is trading near the five-day low. Yesterday, it was moving close to 1.18 and started falling in the evening. The current quote for the instrument is 1.1740. Investors are analyzing the statistics published the day before.
Yesterday, the USA reported on the inflation in May. The CPI, seasonally adjusted, added 0.2% m/m. On one hand, the inflation is supported by petrol prices, which are constantly growing. On the other hand, the core inflation parameters are also increasing and pushing the CPI to the upside. However, it can be seen that different prices were growing unevenly. The major problems occurred with the indexes for used cars and trucks along with household furnishing and operations.
On YoY, the Inflation Rate was 2.8%, which is the highest since winter 2012.
Wednesday will be an important day for the USD. In the evening, the two-day meeting of the US Federal Reserve will be over and investors are expecting the regulator to increase the benchmark rate. It’s quite difficult to overestimate the importance of Jerome Powell’s press conference that will follow after the meeting. If he says that the American economy is doing fine and allows to continue tightening the regulator’s monetary policy, the USD may get stringer.
Powell is still quite a controversial person for the currency market. Janet Yellen, his predecessor, was pretty predictable in her estimations and actions, but Powell is different. At first, he seemed to be a person to follow Yellen’s outlook, but right now one can see that Powell has his own point of view of what is happening to the US economy right now or may happen in the future.
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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