The main currency pair got stabilized after being sold yesterday and is ready to respond to new information.
The EUR/USD pair is stable on Tuesday afternoon. The current quote for the instrument is 1.1903. The pair has moved away pretty far from yesterday’s highs.
It wouldn’t be correct to say that investors suddenly become interested in the American currency or some strategic interest appeared out of the blue sky. At first, the USD was supported by the statistics. According to the New Home Sales report, the indicator was 685K in October after being 645K the month before and against the expected reading of 627K.
Right now, the American currency is pretty calm and waiting for more statistical reports to be published in the evening and the news relating to the taxation system implementation in the USA. Also, today in the U.S. Senate there will be hearings about Jerome Powell, a candidate for the US Federal Reserve Chairman position. The hearings are believed to be formal, because the decision was made quite a long time ago.
It is known that Powell is going to continue Janet Yellen’s policy. He is a bit softer than Yellen, but yet no surprised are expected. According to Powell himself, the inflation target is still 2% and one of the main tasks of the Fed is to support the employment market and keep it strong.
RoboForex Analytical Department