It’s not good to be the USD. Overview for 26.03.2018

The main currency pair remains strong at the beginning of the last week of March; investors’ attitude is against the USD.

EURUSD continues growing on Monday morning. The current quote for the instrument is 1.2391, which is the highest level since March 14^th.

Last Friday, the USA reported on several macroeconomic indicators. One of them, the Durable Goods Orders, expanded by 3.1% m/m in February after losing 3.6% m/m in the previous months. The expected reading was +1.6%, which is much worse than the actual number.  The components of the report showed that the Durable Goods Orders Ex Transport added 1.2% m/m against the expected reading of +0.5% m/m. The month before, the indicator decreased by 0.2% m/m.

Before that, this indicator had been falling for two consecutive months. The current recovery eliminates the previous decline, but no one can say what might happen in the future.

However, the numbers couldn’t support the USD. The comments from the US FOMC relating to three increases of the key rate instead of four counted against the American currency. In addition to that, investors are very worried about possible economic warfare involving the USA, China, and Japan, that’s why their attitude is not in favor of the USD.

This week is going to be interesting and full of statistics from the USA. On Tuesday, investors will be presented with the CB Consumer Confidence in March, on Wednesday – the Final GDP over the fourth quarter 2017 (it is expected to be revised upwards), on Thursday – the Personal Spending/Income. In other words, the American currency will have an opportunity to escape this trap if the reports are quite positive.

RoboForex Analytical Department