USD dollar is gaining strength again, increasing pressure on the EUR / USD. Earlier this week, demand for the US currency was lowered largely due to Trump's criticism of the Fed and moderate optimistic expectations amid negotiations between the US and China.
Trump verbal intervention also had no long-term effect on USD dollar. Published on Wednesday, the FOMC protocols showed that the regulator intends to maintain a policy of systematic increase in interest rates. Here we can say that the minutes reflect the opinion of the meeting participants even before the president's critical remarks, but this morning we received new comments on this matter, from the head of Dallas Federal Reserve Kaplan, who noted that the Fed officials would ignore political pressure. He also noted that a further increase in interest rates would not cause an inversion of the yield curve of government bonds.
According to many experts, statements about the full independence of the FRS can be made today by Jerome Powell at the Jackson Hole performance, thus minimizing the possible impact of subsequent statements by the Trump administration on the US dollar. But first of all investors are waiting for Powell comments on the assessment of the current policy of the Fed and further plans, taking into account the high turbulence in the markets of developing countries, as well as the growing trade confrontation between the US and China.
So far the European currency can not oppose the dollar, the statistics published yesterday turned out to be ambiguous, without having any positive impact on the euro. The data released today on Germany's GDP also had no impact on the market, since the data fully coincided with the forecasts. For the second quarter, GDP increased by 0.5%, annual growth was 2.3%.
Therefore, the general background for Euro has changed from middle-negative to negative, which is likely to contribute to the development of the bearish movement in this market.