Early in the week, the major currency pair is consolidating and waiting for more statistics.
On Monday morning, EURUSD is trading downwards, but still looking quite stable. The current quote for the instrument is 1.1396.
Investors are watching the dialog between the White House and the US Federal Reserve. According to the media, the growth of the interest rates and the disposable income increase, the housing demand went down.
Earlier, policymakers already said that at the beginning of 2019 the rising impulse in the US economy would get weaker, but the Federal Reserve was holding its ground to continue tightening its monetary policy. The news media, in its turn, provides its own contribution to make the situation even more uncertain by constantly reminding about the regulator’s worry relating to influence of the labor market of the inflation.
It is known that earlier the USD President Donald Trump asked for the statistics that indicated the housing demand decline due to the rate increase. On YoY, the indicator had little to show indeed: in 2017, it decreased by 3.7% and in 2018 (over the first three quarters) lost additional 0.6%. The connection is quite simple to see: when consumers stop buying houses, sales of household goods, such as construction and building materials, domestic appliances, furniture, and everyday objects, move down. The durable goods are up to 40% of the consumer group, that’s why the decline has a critical influence on the manufacturing sector.
It’s a pretty interesting story, given that the Federal Reserve has already announced three more rate hikes next year. it seems investors can expect more scandals between the White House and the regulator.
Orgin: RoboForex
