The Euro is under sales again. Overview for 20.02.2020

20.02.2020

The major currency pair is back to falling after a short pause last night. 

EURUSD is still dominated by bears. The current quote for the instrument is 1.0789.

Yesterday evening, the pair tried to reach stability and correct a little bit, but it wasn’t strong enough to continue. 

The FOMC January Meeting Minutes published yesterday was rather mixed. On one hand, the Fed improved its GDP expectations for 2020 and 2021 a little bit thanks to the US-China trade agreement, the first phase of which was signed in January. On the other hand, the regulator once again mentioned weak inflation and that’s quite alarming. The Fed blames the slowdown in economic output.

Moreover, the document shows no unanimousness among the Fed members when it comes to low rates efficiency issues. Some of them believe that keeping the rates low for a long period of time will make the country’s economy and financial system more vulnerable. Others think the low rates will create favorable conditions for financial stability.

The numbers published by the country were quite mixed as well. The PPI added 0.5% m/m in January, which is better than expected and good for inflation. However, the Building Permits in the same month was just 1.57M after being 1.63M in the previous month. Of course, it’s better than market expectations (1.40M) but not as food as it should be.
 

Attention!

Forecasts presented in this section only reflect the author’s private opinion and should not be considered as guidance for trading. RoboForex bears no responsibility for trading results based on trading recommendations described in these analytical reviews.