The major currency pair got a bit stronger yesterday evening and intends to keep the momentum.
EURUSD strengthened pretty much last night and may yet try to continue rising this morning. The current quote for the instrument is 1.0855.
The statistics published yesterday evening showed that the American CPI lost 0.8% m/m after dropping by 0.4% m/m in March and against the expected reading of -0.7% m/m. The Core CPI decreased by 0.4% m/m, which is worse than the expected reading of -0.2% m/m.
However, no one had any illusions about American inflation: during the time of strict quarantine restrictions, the consumption plummeted thus having a significant influence on prices. At the same time, the US Federal Reserve didn’t change its inflation targetб which remains at 2.0%.
The NFIB Small Business Index is slowly “melting”: in April, it dropped to 90.0 points after being 91.7 points in the previous month. Just like many other indices, the expected reading was much worse – it’s rather difficult to predict any possible damages if the crisis continues and calls the shots.
Later today, the US Fed Chairman Jerome Powell is scheduled to speak. Market players are sure that he will tell them something about the regulator’s monetary policy and hint at its further fiscal steps. The speech will be a highlight of the evening; the more positive and confident the words, the better for the USD.
Orgin: RoboForex
