The major currency pair is retreating again on Friday morning; the effect of the FOMC comments didn’t last long.
EURUSD in back to growing on Friday. The current quote for the instrument is 1.1520.
Yesterday, the American currency got a chance for a correction thanks to the comments from the US Federal Reserve Chairman Jerome Powell, who said that the Government shutdown arouse a lot of concerns. According to Powell’s estimations, there might be negative consequences to the country’s economy if the crisis continued.
Apart from other things, Powell paid attention to the US budget deficit, which is quickly increasing and right now estimated at 1 trillion USD with the total national debt of 21-22 trillion USD. This issue will have to be solved sooner or later and the regulator seems to be worrying about it already.
Answering questions at the Economic Club of Washington, Powell told about the regulator’s strategy to reduce the volume of assets on its own balance. The current volume is estimated at 4 trillion USD, while the volume before the crisis was about 1 trillion USD. The Fed will continue selling its assets, but the number is highly unlikely to decrease to the latter reading.
Economic calendar might be very interesting for the US “enthusiasts”. The country is scheduled to report on the CPI in December, which is expected to lose -0.1% m/m. The Core CPI, in its turn, may continue improving, +0.2% m/m each month.