“Bears” are still in charge of the Euro. Overview for 13.11.2018

EURUSD reached the lowest levels of the last 18 months; the European currency is trying to reach stability.

EURUSD is still under significant pressure. The current quote for the instrument is 1.1247.

The American currency started rising quite a long time ago after receiving support from strong data on the US labor market and the economy. Later, the USD was supported by the US Federal Reserve and its plans to increase the key interest rate for the fourth time this year in December. And after that, investors, having no other catalysts at their disposal, paid attention to fast decrease of the USD liquidity on the currency market and responded as quickly as lightning. 

In fact, this process continues for more than a year. In such a manner, the US Federal Reserve is just “blowing out” one “bubble” after another, which were accumulated in the form of bonds and other assets over the years of the QE. Currently, in the fourth quarter, this process is very active and the FRS doesn’t refinance bonds, it just retire them and withdraw money from the market. In this light, the USAD is feeling very well. 

Today’s numbers from Germany were quite neutral. The Final CPI added 0.2% m/m, the same as expected. The ZEW Economic Sentiment increased up to 024.1 pints in November after being -24.7 points the month before. The same indicator for the Euro Area dropped to -22 points against -19.4 points in October. 

In the evening, the USA will publish several minor reports, but investors are very likely to continue following the liquidity situation.