The main currency pair reached the highest level over the last two and a half years and is ready to continue strengthening.
On Monday, they are still buying the EUR/USD pair. The current quote for the instrument is 1/1940.
The reason for this rise was investors’ disappointment with the results of the symposium. It took place in Jackson Hole, Wyoming, the USA from Thursday to Saturday last week. Indeed, market players expected too much from this event, but none of the monetary politicians that reported there lived up to expectations.
The speech delivered by Janet Yellen, the Chairwoman of the US Federal Reserve, was dedicated to the regulation of finances and the entire economy. Nothing about the key rate. The ECB Governor’s speech was about the global trade. Investors didn’t hear from “super Mario” anything relating to the expensive Euro and possible consequences of it.
Everything else was also pretty far away from new fiscal actions of the world’s key Central Banks. Based on this, investors started selling the USD and even boosted sales when the market expectations about the key rate increase were moved from spring to summer 2018.
Today is quite calm when it comes to the macro economic statistics. The Eurozone reported on the M3 Money Supply in July and the numbers were worse than expected. Later in the afternoon, the USA will publish the July reports on the Goods Trade Balance and the Wholesale Inventories. However, the content of these reports are very unlikely to support the USD.
RoboForex Analytical Department