EURUSD hit another bottom and remains extremely weak.
The major currency pair reached new lows yesterday. The current quote for the instrument is 1.0707.
The market is currently against the Euro due to the difference in interest rates and monetary strategies of the US Fed and the ECB. However, there is a nuance – investors are too negative towards the European Central Bank, although the regulator was more “hawkish” during its April meeting than usual.
At the same time, the situation around the US Fed is looking like a Brazilian carnival – those who have brighter expectations are right. Overall, the benchmark interest rate might leap up 125-175 basis points and both the country’s economy and experts are completely fine with that. However, there are forecasts that imply a 200-point total hike. It’s good but there are risks of “overheating” the economy and wave-like defaults of the companies that didn’t include such a quick rate hike in their forecasts.
In general, everything pivots on the difference in interest rates and monetary strategies of regulators. The volatility is expected to remain high as long as this difference situation is resolved.
In this light, market players are barely interested in statistics. However, there will be a couple of reports worth paying attention to today – the Durable Goods Orders and the Conference Board Consumer Confidence.
