After updating its five months lows, the main currency pair started recovering and regaining positions.
On Tuesday morning, EURUSD is trying to keep the momentum that started yesterday. The current quote for the instrument is 1.1816. We remind you, that the “local bottom” is at 1.1715.
The news published yesterday and today is full of information. Investors are still discussing the news relating to the cancellation of customs duty on imports by the USA and China. It makes relations between the countries less challenging, but no one should think that the matter of trade wars is settled: the USA might renew them at any moment.
Another factor that is against the USD right now is decrease of the profitability of 10-Year Bonds. At the moment, it is less than 3.05%, although last Friday the indicator reached 3.12%. It might be both a correction and the result of the U.S. Department of the Treasury interference.
In the evening, investors may pay attention to the latest US FOMC Meeting Minutes report. The document isn’t expected to have any surprises in it – investors already know almost everything the report has to offer. Current market expectations relating to the regulator’s benchmark rate increase in June is 100%. Right now, investors still believe that the Federal Reserve might increase the key rate four times this year instead of three.
RoboForex Analytical Department
