EURUSD dropped a little bit. Overview for 03.11.2021

The major currency pair keeps waiting for volatility in the middle of the week. The current quote for the instrument is 1.1580.

Nothing extraordinary has happened to EURUSD over the last 24 hours. Investors are focused on the US Fed meeting, which will be over later today. Thanks to this, the USD rate improved a bit last night.

The Fed is expected to announce a pretty clear decision on reducing the QE programme. Market players currently believe that -$15 billion per month will be enough (right now, it’s $120 billion). If it happens, the regulator may boost the reduction during its February meeting and close the programme completely in summer 2022. After that, it may consider revising the benchmark interest rate.

This scenario is the most comfortable for the “greenback” because it will help the US currency to strengthen.

The statistics from Europe published yesterday weren’t good and couldn’t support the Euro. For example, the German Final Manufacturing PMI showed 57.8 points in October after being 58.2 points before. The same indicator for the Euro Area dropped from 58.5 to 58.3 points.

Apart from the Fed meeting, investors should pay attention to the Unemployment Rate in Europe for September. Also. The USA will report on the Services PMI in October and the Factory Orders in September.