The major currency pair moved away from its two weeks lows; right now, it is quickly recovering.
On Thursday, the Euro is quickly recovering against the USD. The current quote for the instrument is 1.1278.
The US Federal Reserve Chairman Jerome Powell, who spoke yesterday, said that the regulator had to take the necessary measures to help the country’s economy to keep the current pace or even improve it. Market players took this information as intention to сне the rate at the end of July. After reading The Fed’s June meeting minutesб investors strengthened their conviction that the prospect is very likely. For the USD, it’s obviously negative.
In the morning, Germany published the final report on the Consumer Price Index. The indicator remained the same as the month before, 1.6% y/y, and didn’t surprise anybody. Still, the best inflation rate reading for Germany and some other European countries is 2.0% and everything that is significantly below this number indicates the necessity of support on behalf of the European Central Bank. It’s pretty tough for Germany to boost the CPI, even despite a stable employment market, particularly as there are problems with new orders and industrial production.
In the evening, the USA are scheduled to publish their weekly report on the Unemployment Claims, which is expected to show 223K after being 221K the week before. Overall, these are quite neutral numbers and EURUSD is very unlikely to respond to them.
At the same time, market players will be presented with the Inflation Rate in the USA. On MoM, the indicator is not expected to change. The Core CPI may add 0.2% m/m in June, which is a bit better than in May. Any improvement of the indicator, even the smallest one, is a good sign for the USD.
Just like yesterday, the US Federal Reserve Chairman Jerome Powell will deliver another speech later in the evening.
Orgin: RoboForex
