The Euro is drifting in uncertainty. Overview for 30.01.2018

The main currency pair pared yesterday’s decline and is ready for more fluctuations.

The EUR/USD pair recovered after yesterday’s sales. The current quote for the instrument is – 1.2422.

Today, some important statistics from the Eurozone was published. The GDP Growth Rate Flash in the fourth quarter 2017 expanded by 0.6% q/q, just as expected. On YoY, the indicator added 2.6%, which is a very good number and, moreover, it‘s better than in the USA right now.

The current growth speed of the Eurozone economy is the strongest over 10 years. In this light, one might as well agree with the ECB, which says that the European economy is in transition from recovery to balanced expansion. Apart from this, signals from business environment indicate that the year of 2018 started pretty well for the Eurozone.

One should take into account that the European regulator is still supporting the economy using the QE program. The program is the main reason why the economy in general and some of its sectors in particular improve faster than average.

In the evening, the US Federal Reserve will open another two-day meeting, which is expected to be the last one headed by Janet Yellen, because in February she will be replaced by Jerome Powell. Investors are expecting no surprises; Yellen’s speech is supposed to be neutral, because she has already said everything she wanted. However, they will surely anticipate Powell’s first speech as the Chairman of the regulator in the nearest future.

RoboForex Analytical Department