The “greenback” retreated again. Overview for 02.11.2021

The major currency pair has been rather volatile recently. The current quote for the instrument is 1.1590.

EURUSD’s behaviour is rather mixed. The previous rally in the US 10-year bond yield made the “greenback” rise. However, the craze died down and the USD retreated.

The US statistics on the Markit Manufacturing PMI Final were no good as the indicator dropped to 58.4 points after being 60.7 points against the preliminary estimate of 59.2 points and the same expected reading. Enterprises had to raise prices for their clients because the cost of raw materials also went up. The number of new orders increased but still was the lowest over the last 10 months. in addition to that, the components of the report show that the car manufacturing industry was hurt a lot – it’s been the worst period since 2009. At the same time, the industry managed to keep employment.

According to the United States Secretary of the Treasury Janet Yellen, there is no economic overheating. Inflation did go up if compared with previous years but the reason is the pandemic. Yellen believes that the CPI will cool down in the long term.

The two-day meeting of the US Fed starts today. probably, it’s the key highlight of the week – the market volatility may start increasing in the evening.