The main currency pair is trying to reach stability, but investors’ attitude is in favor of the USD.
On Wednesday morning, EURUSD is trying to recover. The current quote for the instrument is 1.2263.
Reports from Germany published yesterday were rather negative and the Euro stood no chance. The ZEW Economic Sentiment fell up to 5.1 points in March after being 17.8 points in the previous month. For the Euro Area, the same indicator decreased from 29.3 points in February to 13.4 points this month.
The lower the index reading, the more pessimistic sentiment in the economy. This is the reason why investors’ response to decline of both indexes was so emotional. In addition to that, the US Federal Reserve meeting, which is taking place these days, provides more pressure on the Euro. The meeting will be over later in the evening and may result in the US benchmark rate increase by 25 basis points. However, this decision is expected and won’t surprise anybody or influence the prices a lot. The main thing that investors are expecting is Jerome Powell’s providing any hints at more aggressive tightening of the regulator’s monetary policy.
Apart from the FOMC meeting, there will be another news as well. The USA are going to report on the Existing Home Sales in February (expected to grow from 5.38M to 5.41M) and the Current Account in the fourth quarter 2017.