EURUSD reached stability after falling earlier and is looking for reasons for the correction.
After two days of plunging, the major currency pair is trying to rebound on Wednesday. The current quote for the instrument is 1.1910.
Yesterday’s statistics from the USA turned out to be disastrous. The Retail Sales lost 3.0% m/m in February after adding 7.6% m/m (revised) the month before and against the expected reading of 0.5% m/m, which was rather acceptable. However, it’s rather logical as the indicator plummeted because of the cold weather in the country.
In the future, the weather may get better and consumers may become more active after an aggressive anti-coronavirus vaccination campaign in the USA. Once most of the restrictions are removed, Americans will return to their normal everyday life.
The Industrial Production in the USA was -2.2% m/m in February after being 1.1% m/m in the previous month and against the expected reading of 0.4% m/m. This is another consequence of the cold and snowy winter.
Today is an important day for EURUSD. The US Federal Reserve System is finishing its two-day meeting and will make a decision relating to its monetary policy and interest rate. However, no one really cares about the rate because it will remain unchanged for a long time. The most important thing today is Jerome Powell’s comments, which may be a bit more aggressive than earlier but still are very unlikely to contain any hints at the closure of the regulator’s stimulus programs. The Fed’s monetary policy is not expected to change. The American currency might get support in case there are any comments about tightening the regulator’s monetary policy this year or in the summer of 2023 when the stimulus programs expire. However, such comments aren’t likely to be heard today.