Review of current events for USD, EUR, GBP

 

After the "hawkish" statements of the American regulator, which were recently voiced, market participants are curious to hear comments from some representatives of the Fed. Today, comments on the Fed’s decision will be voiced by Brainard, Mester and Yellen.

Market participants will try to understand how determined the individual members of the committee are in regards to a December rate hike. A confident tone of statements is able to give strength to the bulls on the US currency, who will continue to build up positions on the US dollar.

From the published statistics in the US comes the index of consumer confidence, which is based on a survey of households on the level of confidence in the current state of the economy and its development in the future. A good figure will add confidence to market participants that the US economy will continue to show economic growth, which in turn will positively affect the rate of the US dollar.

At the same time, there is a figure on sales of housing in the primary market, which also signals the state of the American economy. The sales growth is expected to reach 591 thousand, which will also serve as a positive factor for the US dollar.

Chart: tradingeconomics.com

After the elections in Germany, the EUR is trading at approximately the same levels as before the election, and thus, it can be concluded that the European currency will soon continue to strengthen. The current increase in the prices of the European currency is prevented by the ECB, which conducts verbal intervention, trying to cool the excessive appetite of buyers.

In regards to the British pound, market participants are waiting for a new round of Brexit negotiations. On the part of the British government, positive statements are coming in regards to the pound’s dynamics, however, there are no such statements from the European side yet.

Full growth of the US currency is currently hindered by one negative point. At the current time, Trump's promise to change legislation in the sphere of fiscal policy is still not fulfilled. The implementation of Trump's plans would certainly help the growth of the US currency.

In general, the markets are consolidated and await further developments. We wish you profitable trading!

 


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Care: These reviews are a private opinion of ARUM CAPITAL and are provided for information only. In no way can the provided analysis be considered as an action signal, neither is it any sort of investment advice (for the purposes of EU Directive 2004/39/EC). ARUM CAPITAL waives any liability for the trading results which may arise after using these reviews. These materials contain NO warranties or guarantees, either direct or implicit, on the precise, complete or confirmed character of the details they contain.

 

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