EURUSD continues falling.
The major currency pair is not tired of updating its four-month lows. The current quote for the instrument is 1.1764.
The USD is in demand due to the interest of investors in “safe haven” assets. Yesterday, the word got out about a possible default of hedge funds for a variety of margin requirements but it seemed like market players were just looking for a reason not to feel bored and tired.
Yesterday, one of the Fed members said that the regulator wouldn’t revise its rate and monetary policy in order to please the government and help the authorities handle the increasing federal government deficit. The regulator’s monetary policy is designed to help the labor market and inflation reach stability. The government is not on this list.
As soon as the Fed reaches its targets, interest rates will surely start to rise but not before. The increased rates will lead to hikes in American debt servicing, thus putting pressure on the Fed to make it accrue reserves. Long story short, no one needs higher rates right now.
Later today, the USA is starting to publish statistics, such as the HPI for January, as well as the Conference Board Consumer Confidence for March, which may go from 91.3 to 96.9 points, and that’s a very good sign for the “greenback”.
Orgin: RoboForex
