After two trading sessions of selling, the main currency pair stopped falling; investors’ interest is in favor of the USD.
The EUR/USD pair stopped falling as fast as earlier. The market simply closed its long positions after the most important intrigue from France was over pretty neutrally: the French presidential elections were won by Emmanuel Macron. These elections were the most scandalous and disturbing over the years as the market included all possible consequences into the EUR/USD quotes, but everything ended smoothly. The risk share is now excluded and the pair is moving back to more “healthy” levels. The current quote for the instrument is 1.0880.
Right now, the demand for the USD is pretty clear. It is based on the market predictions about the rate increase by the USA Fed during the June meeting. According to the current expectations, investors think that there is an 88% possibility that the rate will be increased against 78% the day before.
There are reasons for such optimistic estimations: April reports on the American employment market showed that it was stable. And if the labor market is stable and confident, related industries will also rise. The employment level of the country’s population allows to expect the expansion of the manufacturing sector and the growth of consumer spending, given that the average earnings are now back to predicted numbers.
So, the market’s attention to the Fed representatives’ comments will be greater: investors will try to find any confirmations of their theory.
RoboForex Analytical Department