EURUSD is staying at its local lows amid optimistic spirits in the USA.
On the last Monday of March, the major currency pair is falling again. The current quote for the instrument is 1.1779.
After updating its four-month highs against the Euro, the “greenback” is still looking pretty strong. The key triggers that support the American currency remain the same – market players are very optimistic about an aggressive anti-coronavirus vaccination campaign and the positive signals coming from the US economy. Even the statistics on consumer spending that showed a decline in February didn’t spoil the mood.
Everything is quite simple: investors believe that the aggressive vaccination campaign will help to remove quarantine restrictions much earlier and that might influence inflation – it is expected to go up. This, in its turn, may force the US Federal Reserve System to revise its ultrasoft monetary policy and increase the benchmark rate ahead of time. It’s quite logical but investors should understand that the American regulator, which earlier announced its intentions to keep the rate low until 2023, can’t be controlled.
The Euro managed to recover a little bit after Germany had published its statistics. The Services PMI showed 50.8 Points in March after being 45.7 points the month before. The Manufacturing PMI also skyrocketed to 66.6 points after being 60.7 points over the same period of time.
All the important statistics from the USA, such as the labor market data in March, are planned for the second half of the week. These reports will be very important for the key economic processes.
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.