On Wednesday, the major currency pair is barely moving; investors are saving strengths in anticipation of news from the US Federal Reserve.
EURUSD is standing still on Wednesday morning and waiting for the FOMC meeting to be over. The current quote for the instrument is 1.1065.
Yesterday, the USD weakened a little bit as market players were adjusting their positions before the Fed’s highly anticipated decision to cut the rate. The regulator’s September meeting will be over tonight and investors are expecting the Fed to cut the benchmark rate by 25 basis points. As for CME (Current market expectations) that imply another rate cut until the end of this year, they are 80%. The White House is putting a lot of pressure on the Fed, hammering it for lack of activities, and believes that there should more significant rate cut than 25 basis points. Anyhow, tonight we will learn the regulator’s stance on this.
Yesterday’s numbers from Germany supported the European currency pretty well. The ZEW Economic Sentiment went up from -44.1 points in July to -22.5 points in August. Of course, the indicator remains negative and the current correction doesn’t mean any bright future in the next 6 months, but the fact of recovery is surely positive.
Numbers from the USA were also quite good. The Industrial Production added 0.6% m/m in August after losing 0.1% m/m the month before and against the expected reading of +0.2% m/m. major contribution was made by machinery (+1.6%, primary metalы (+1.3%), and nonmetallic mineral products (+1.1%). However, the key problem is the same: everything in this area is very difficult to predict as long as there are trade wars between the USA and China.
Forecasts presented in this section only reflect the author’s private opinion and should not be considered as guidance for trading. RoboForex bears no responsibility for trading results based on trading recommendations described in these analytical reviews.