The Euro moved to the five weeks’ highs. Overview for 27.03.2018

The main currency pair continues rising; investors are still against the USD.

On Tuesday afternoon, EURUSD is still growing: it has already reached the levels of February 16^th and intends to continue trading upwards unless something really serious happens on the currency market. The current quote for the instrument is 1.2462.

There were no significant macroeconomic statistics for EURUSD yesterday, that’s why investors focused on the news, which was plenty.

The Euro moved upwards after Jens Weidmann, the president of the Deutsche Bundesbank, said that there was a possibility that the European Central Bank might increase the benchmark rate as early as in May 2019. According to his words, such expectations were quite real, because the ECB would have to make its monetary policy reach stability soon. The QE program will continue until September and it influences the Euro Area economy in a very positive way.

On the other hand, geopolitics is against the USD. Yesterday, the USA decided to expel a lot of Russian diplomats from the country and close the Russian consulate in Seattle. These are very significant moves, which may later increase political controversy between the USA and Russia. As a rule, the USD is very sensitive to such news.

In today’s calendar, there are some minor reports from the Euro Area and Germany along with some numbers from the USA, including the CB Consumer Confidence in March, which is expected to rise thus providing some support to the American currency.

RoboForex Analytical Department