The EUR/USD is trying to correct on Monday morning, although the situation is not changing a lot. The pair is currently trading at $1.1720. On Friday, the US President spoke of the Fed and other central banks in a hawkish tone, saying they are manipulating currency rates. While the Fed is focusing on rate hikes, other regulators keep their rates low, he said, which helps the dollar strengthen, too much at times. Meanwhile, strong greenback is bad, as the difference in currency rates makes the US economy less competitive.
These words look quite fair; however, it is doubtful whether such ‘verbal interference’ may influence the EUR/USD positively. The emotions are likely to calm down in a day or two, and the major pair will get back to its usual rate.
Two fundamentals being released this week are worth mentioning. First, it is the final US Q1 GDP reading, with the expectations at 4.1% QoQ (the second reading was 2% QoQ). The higher the GDP reading is, the better for the dollar. Second, durable goods in June will be monitored closely; a good recovery is expected after the lackluster data in May.
The ECB is holding its scheduled meeting this week, although the central bank is not expected to change something in its monetary policy.
Orgin: RoboForex
