EUR/USD today: The Fed returned optimism for the dollar
As a result of a two-day meeting, the US Federal Reserve raised interest rates to 2.25% and signaled about one more rates hike this year and three hikes next year, supporting the dollar in the long term. The US dollar reacted in different directions while publication of the news due to the fact that the market was expecting higher rates. Significant support for the dollar was provided by the resumption of risks when Trump had accused China in interference in the elections.
Events for today:
- 15:00 – consumer price index (CPI) of Germany (m / m) (Sep).
- 15:30 – US GDP data : nondefence goods shipments (excluding aircraft) (m / m), core durable goods orders (m / m) (Aug), durable goods orders (m / m) (aug), GDP (Q/Q) (Q2), GDP deflator (Q / Q) (Q2), goods trade balance (Aug) and initial jobless claims.
- 16:30 – the speech of the ECB President Draghi will take place.
- 17:00 – pending home sales (m / m) (Aug) in the US.
- 23:30 – the speech of the Fed Chair, Mr. Powell.
The day is full of speeches by representatives of the world’s central banks on the summit and it can cause the growth of volatility in the market.
The EUR/USD pair, after the Fed’s statements, will remain under pressure and with the break through of psychology 1.1700 it is expected to test the support levels: 1.1670 and 1.1650. The resistance are the marks: 1.1720 and 1.1740, the consolidation above which will indicate the formation of a flat for the pair.
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Hanzenko Anton
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