The Euro is being corrected. Overview for 09.01.2018

The main currency pair is moving away from its highs because of some technical signals.

After all, the EUR/USD pair started a technical correction. The current quote for the instrument is 1.1957.

So, the European currency is moving away from the high at 1.2090 it reached at the beginning of the month. Mostly, the pair was being corrected yesterday evening. This morning, the EUR/USD pair is slowly moving downwards, but without any significant fluctuations.

All market speculations and doubts are still about the US monetary policy. The US Federal Reserve told several times that it was going to raise the key rate three times in 2018. For some reason, investors aren’t satisfied with the current inflation trend and they believe that there will be fewer raises and the periods between them will be longer.

The latest report on the US CPI was 2.2% y/y with the Federal Reserve’s target being 2.0% y/y. it’s not clear what the problem is. The Labor Market has also been fine and stable for several years in a row. Right now, there are no reasons why one should be doubtful of the regulator’s monetary policy, unless Jerome Powell, who will become the Chairman in February after replacing Janet Yellen, changes the strategy.

However, this is hardly probable, that’s why all market movements relating to this are mostly speculative.

RoboForex Analytical Department