The Euro updated its two weeks high and lost courage. Overview for 27.02.2019

27.02.2019

After updating the high of February 6th, the major currency pair stopped growing. 

EURUSD continued moving upwards yesterday, but then knock against the high of February 6th. The current quote for the instrument is 1.1376, while yesterday’s high was at 1.1403.

The USD was let down by mixed numbers from the USA, decrease of 10-year bonds profitability, and comments from the US Federal Reserve Chairman Jerome Powell. When delivering his speech yesterday, Powell said that the economic outlook for the USA was generally positive, but there were some certain problems anyway. He confirmed that a lot of USD investors didn’t like a “patient” approach to the regulator’s monetary policy. Later he said that the inflation seemed stable and there were signs of flashy growth of salaries, but market players didn’t pay attention to these words. However, they should have. 

There will be some interesting macroeconomic reports today. In the afternoon, the Euro Area several reports on Business Climate in February (Business Confidence, Services Sentiment, Consumer Confidence, Consumer Inflation Expectations, Economic Sentiment, Industrial Sentiment). If the numbers match market expectations, EURUSD may remain neutral. However, if today’s reading are significantly worse, investors may start selling the pair. 

In the evening, the USA are scheduled to report on the Pending Home Sales in January. After losing 2.2% m/m in the previous month, the indicator is expected to add 0.7% m/m. It would be very good if the actual data really showed the index recovery, because consumer confidence is quite positive and shows that Americans are intended to spend money. The higher the reading, the better for the USD.

Apart from this, the USA will publish the Factory Orders in December. In November, the indicator lost 0.6% m/m, so not it is expected to recover by 1.5% m/m. In case it matches market expectations, then the previous decline may be explain by some local factors. The steady growth of this indicator is a good sign for the American currency. 

At 3:00 PM GMT, Jerome Powell will deliver another speech. He may talk about global economic issues or other related topics, that’s why the USD is not expected to react vividly. 

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.