USD is rising. Overview for 20.02.2018

On Tuesday afternoon, the main currency pair EURUSD started falling; investors are nervous in anticipation of the FOMC Minutes to be published tomorrow. 

EURUSD is trading to the downside significantly on Tuesday afternoon. The current quote for the instrument is 1.2344.

For the second day in a row, a low number os statistcs is avaliable. However, today there were several reports from the Euro Area. The first one, the German PPI added 0.5% m/m in January against the expected reading of +0.3 m/m. The German ZEW Economic Sentiment Index fell from 20.4 points in January to 17.8 points this month. The same indicator for the entire Eurozone decreased up to 29.3 points in February after being 31.8 points the month before.

Still, investors seem to barely pay attention to these numbers. Due to the absence of any significant reasons, they are focused on the previous FOMC Minutes report that is scheduled for tomorrow. It was the last meeting of the American regulator headed by Janet Yellen and the Federal Reserve didn’t say anything really new.

However, studies indicate that investors are worried that the report may hint at a faster increase of the key rate this year that it was predicted before. Even if the report says that the rate is sure to be revised three times in 2018, the same as planned earlier, it will provide the USD with much support, because there were some speculations on the market in the past that the Federal Reserve might intentionally slow down tightening its monetary policy.

RoboForex Analytical Department