On Thursday, the main currency is trading below another high; in order to continue growing, it requires a strong driver.
The EUR/USD is trading indistinctly on Thursday morning. The current quote for the instrument is 1.1411.
Janet Yellen, the Fed Chair, who spoke yesterday, emphasized that the country’s economy was gathering pace due to more active investments into business, growing household spending, and global economic improvement in the world. All these factor taken together will allow the regulator to continue increasing the rate. It was in favor of the USD, which managed to recover a bit after previous sales.
However, this optimism was slowed down by the comments that the Fed didn’t have to follow its previous pace of increasing the rate. It’s quite logical: the terms have changed and the market conditions are completely different. Consequently, the Fed will be very attentive to the price performance on different levels, from the global inflation to its components. The inflation target of the Fed is still at 2%.
The Fed is going to decrease the total amount of its acquisitions before the year end, but only if the CPI and the Labor market statistics allow.
It’s rather interesting that investors are very careful and take their time before opening short positions in the EUR/USD pair, although it’s technically and fundamentally reasonable. Another thing, which still influences the USD, is the geopolitical factor relating to the scandal involving Donald Trump and his son.
RoboForex Analytical Department