On Wednesday afternoon, the major currency pair remains under “bearish” pressure despite some weak statistics from the USA.
EURUSD is losing momentum. The current quote for the instrument is 1.1270.
Yesterday’s numbers from the USA showed that the CB Consumer Confidence dropped up to 135.7 points in November, which is much worse than expected. In October, the indicator was 137.9 points. Under normal conditions, the USD would have lost its positions, but not this time.
The FOMC member Richard Clarida, who spoke yesterday, said that the future of the US regulator’s monetary policy was uncertain, meaning there was no ready decision for the key interest rate in the nearest future. According to his opinion, in case of many rate hikes, they would put pressure on the GDP, but in case of few rate hikes, they would raise risks for financial stability and boost the inflation. One should admit that he was right, that's just the way it is.
Investors would take these words okay, unless there appeared some information in the media that the US President Donald Trump was intended to increase import duties for foreign cars as early as the next week. What is important, it’s not only about China. Canada and Mexico may be excluded, but cars from other countries will go up in prices. Reportedly, the increase may be up to 25%.
In this light, investors’ interest in the USD rose, thus helping the American currency eliminate all negative consequences of the weak statistics.
Later in the afternoon, one should pay attention to the second revision of the US GPD in the third quarter. The first estimate was 3.5%, while the second one is expected to be better, 3.6%.