EURUSD reversed again; market sentiment is in favor of the “greenback”.
The major currency pair is falling again on Wednesday; the USD is sitting pretty. The current quote for the instrument is 1.1840.
Market players are very cautious and closely watching any pandemic-related news. Germany extended the lockdown period, France and Italy are pretty close. This probably might be a possible third wave of the COVID-19 but if it is, it will be an extremely negative signal that will put colossal pressure on the European currency.
At the same time, the USD remains quite stable. When addressing Congress, the US Federal Reserve System Chairman Jerome Powell said that the regulator would expect inflation to rise this year. On the other hand, the inflation pressure shouldn’t be too high and last too long, just as the recovery process would require.
Powell refused to talk about future tax and budgetary policy but said that the regulator had enough tools to help it to fight high inflation.
Later today, investors should pay attention to the March reports on Manufacturing and Services PMIs from the Euro Area and Germany. The Euro area is also scheduled to report on the Consumer Confidence in March. The USA is going to publish a lot of reports, the most important of which are the Durable Goods Orders for February and the Manufacturing PMI from Markit for March.
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.