On Monday, the market major is retracing. The current quote is 1.0250.
On platforms, interest is growing towards safe haven assets, and the USD thus becomes the unquestionable leader of demand.
Firstly, this change is connected to the news from China. All hopes on the Chinese government giving up the zero tolerance regime, have faded. The number of newly infected is growing; the Baiyun district is Guangzhou is closed for quarantine. Schools are closed in certain districts of Beijing.
Secondly, investors are still keen on the December meeting of the Fed, and their sentiment changes every now and again. After the October US inflation report was published, the market believed that the interest rate can be increased slower and more carefully. The expectation was 50 base points. On these expectations, the USD lost quite a deal.
However, the moods altered again, and the Fed members one by one started pointing out the necessity of fighting with inflation further on. This means the interest rate will keep on increasing. Expectations changed for more aggressive 75 base points.
Today the macroeconomic calendar is empty, so market members will follow the existing drivers.
Forecasts presented in this section only reflect the author’s private opinion and should not be considered as guidance for trading. RoboForex bears no responsibility for trading results based on trading recommendations described in these analytical reviews.