Analysis EUR/USD. The Euro is keeping momentum

eur_gbp_1On Monday, the major currency pair is keeping its momentum; comments from monetary policymakers put a lot of pressure on the USD.

EURUSD continues rising. The current quote for the instrument is 1.1377.

After the US Federal Reserve gave very clear signals that it was ready to cut the rate and soften its monetary policy in case the country’s economy slowed down, the regulator’s representatives started speaking of it more often.

For example, last Friday FOMC Member James Bullard said that the regulator should have cut the rate in June in order to support the inflation. However, Bullard’s stance on the issue is no surprise to anybody: last week, he was the only member of the Committee who voted against keeping the rate intact.

Neel Kashkari, the President of the Federal Reserve Bank of Minneapolis, wasn’t eligible to vote during the last meeting of the regulator, but he is in favor of taking more aggressive steps. He believes that the rate should be decreased by 50 basis points at once and then kept intact until the inflation reaches stability at 2%.

Taken together, all these comments have negative influence on the USD.

Today’s macroeconomic calendar is almost empty and offers no significant reports that may influence major currency pairs. In the morning, Germany will report on the Ifo Business Climate, which may reduce down to 97.2 points after being 97.9 points earlier.

Orgin: RoboForex

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