The EUR/USD is being corrected. Overview for 30.03.2017

After skyrocketing to the November’s highs, the main currency pair started trading to the downside slowly; the market is turning to the USD again.

The EUR/USD pair is falling on Thursday. The current quote for the instrument is 1.0734; it is being sold for the third consecutive trading session. After the pair reached 1.0905 on Monday, investors decided it was enough and the market situation is in favor of the slow decline.

The ways the FOMC members spoke yesterday were quite similar. Both Charles Evans (Chicago) and Eric Rosengren (Boston) think that the USA economy requires the rate to be increased slowly in order to avoid being overbought later. This is what these two monetary politicians have in common. However, the difference is that Evans thinks that increasing the rate twice more this year will be enough, while Rosengren is considering the American economy to be strong enough to withstand a total of our increases in 2017.

The point is that it’s not necessary to increase the rate a lot every time, 25 basis points will be enough, but regularly. This is what the USD supporters liked. 

This evening, the USA is going to publish the report on the Final GDP in the fourth quarter 2016. It is expected to add 3.5% q/q against the previous reading of 2% q/q. If the number matches expectations, the EUR/USD pair will continue falling.

RoboForex Analytical Department