The main currency pair is actively retreating in the middle of the week despite the neutral speech delivered by the American president.
In keeping with the best traditions of the American politics, there was nothing new in Trump’s words. It’s a modern American way of doing things – to arouse the curiosity of the market, fuel informational tensions, and then pretend that there was nothing to say. The current quote for the EUR/USD pair is 1.0541.
However, the American president didn’t provide any details and said nothing that could inspire the market. He told the Congress about the NATO support, respect of foreign sovereignty, readiness to establish new international connections. The subject of security was one of the most important in Trump’s first high-stakes speech, but he said nothing new about it as well.
Once again Trump was speaking about the ObamaCare program termination and his readiness to reform the taxation system. But that was it. No more details that the market was waiting for. Under other circumstances, the USD would go down because Trump’s speech fell short of expectations, but the market decided to focus on the oncoming meeting of the Fed (market players continue to ignore the national debt issue).
The new month started, which means that today we may expect statistical reports on the labor market over the previous month. On Wednesday, the ADP is going to publish the updated reading of the Non-Farm Employment Change. On Friday, the NFP and unemployment reports are expected. Weekly reports in February were rather neutral, which means that all three readings may be stable.
RoboForex Analytical Department