The main currency pair is being corrected to the upside after 8 trading sessions of sales in a row.
The EUR/USD pair is recovering during the trading session on Tuesday afternoon. The current quote for the instrument is 1.0630. The pair had been sold more or less actively for 8 consecutive trading sessions and today the market finally managed to rebound.
Later this afternoon, Janet Yellen, the Fed Chair, is delivering her speech. The speech attracts a lot of attention: the market is waiting for more or less particular dates when the regulator will increase the rate. We remind you that earlier this year the Fed said that it was going to increase the rate three times in 2017. January and February are off the list and March is also not quite clear so far.
There are speculations on the market that Yellen will probably speak in the same way as usual: she is very likely to talk about how key macroeconomic indicators have reached their preliminary targets, emphasize the regulator’s collaboration with the Congress, and say that the influence of cyclical factors has smoothed. Probably, there won’t be any details or nuances: the country’s authorities haven’t published any targets for major macroeconomic indicators yet, that’s why the Fed is expected to be very careful of making its own forecasts until the American government officially announces some specific information.
So, if there aren’t any particular hints that the rate might be revised in March, and it appears that’s the way it is going to be, the EUR/USD pair may recover to 1.0650 – 1.0675.
The statistics published by Germany this afternoon was quite neutral. The German Preliminary GDP in the fourth quarter of 2016 expanded by 0.4% q/q after adding 0.2% q/q the quarter before and against expectations of 0.5% q/q. In its turn, the German Final CPI in January lost 0.6% m/m, thus matching the preliminary reading.
RoboForex Analytical Department