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EUR / USD closed the day with a slight gain retaining the positive sentiment

Nov 30 2018, 03:13 AM (CST) | Fortfs.com

The second day in a row, EUR / USD pair able to close in a positive territory, but the growth impulse slowed down significantly, since yesterday there were no new drivers on the market that could significantly affect the actions of traders.

Good data on the German labor market, published yesterday, had virtually no effect on the trading. Fundamentally but not technically European currency remains under pressure amid obvious economic and domestic political problems. Therefore, the main driver of the movement of EUR / USD remains USD dollar.

Following the statement by Fed Chairman Powell that interest rates in the United States are approaching neutral values, the dollar has significantly lost ground, as investors have substantially revised their views on the Fed’s future actions. FOMC minutes, published yesterday, generally confirmed inputs from Powell’s speeches. Fed officials are no longer so sure of the feasibility of maintaining the current rate of rate hike, as they fear increased influence on the US economy of negative trends in the global economy. At the same time, the protocols confirmed the intentions of the Fed to raise the rate at the December meeting, which is widely expected by the market.

Therefore, we can now say that both currencies are not in their best condition, the euro and the dollar are under certain pressure, which limits the possibilities for the formation of a strong trend movement. But, in our opinion, locally, the European currency is in a better position, since all the negative news related to this currency is already taken into account in the current price, but for the dollar, investors are forced to adjust overstated expectations related to the Fed policy.

Today, in addition to geopolitical news we will focus upon to the G20 summit news in Argentina. However economic news should be given attention as well, as preliminary figures on inflation will be made public in the EU.

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