The main currency pair continues growing, but the ECB may stop bulls.
The EUR/USD is still rising and the volumes are impressive. The current quote for the instrument is 1.2430.
The fact that the main currency pair updates its highs almost every day attracts a lot of investors’ attention. They had an anti-USD attitude earlier, it’s not a surprise. However, when senior politicians start feeling the same, stock exchange activity is increasing. Yesterday, Steven Mnuchin, the US Secretary of the Treasury, said that the weak USD gave advantages to the country’s commerce sector. It was quite an unusual comment, because over the last 18-20 years American politicians and economists had been saying that the strong national currency is a sign of US stability. Now the rhetoric is slowly changing and attention of the White House is once again focused on what is happening inside the country. It seems like investors don’t know how to respond to this.
Hardly anybody duly appreciated Donald Trump’s initiatives to put supplementary taxes on imports of washing machines and solar batteries. In response to this, the currency market attacked the USD once again in the afternoon. In general, both ideas (the taxation system reform and ideas to limit the import of the goods, which the USA are able produce by itself in the required amount and quality) are pretty similar.
Changes in the global concept towards the US Dollar force investors to respond in a usual way: try to avoid the risks, which are now very subtle.
Considering that the EUR/USD is getting stronger and stronger, one may assume that the European Central Bank may try to stop this rally later in the evening. It is not expected to deal with the key aspects of the regulator’s monetary policy. Most likely, Mario Draghi’s speech will be very tough towards the Euro rally. If it works, the USD will have a chance to recover a little it.
RoboForex Analytical Department