Euro is trying to rise before fed policy meeting
On Tuesday, December 18, bidding on the Euro resulted in the growth. During the day there was observed multidirectional dynamics. In the first half of trading in Europe, the Euro rose to $1,1402. On the American session, the Euro lost points, dropping to $of 1.1350. Pressure on the us dollar have raised doubts of the market participants that the fed instead of the planned three rate hikes in 2019 will increase them twice.
Also, the fed is pressing the U.S. President Donald trump. On Tuesday, he expressed hope about what FOMC members think will improve the level of key interest rates.
The price of Brent crude fell nearly 6%. Its decline has put pressure on the canadian dollar. Due to this major pair retraced at the end of the day. The Euro/dollar came down 1.1350.
Because of the FOMC meeting and press conference, Powell’s forecast no. In the Asian session, the Euro rose to the dollar by 33 points. The current rate — 1,1392. Buyers approach the resistance level around 1.1400. The market is preload resistance, which is a bullish signal and the willingness of buyers to move “North” to 1,1428.
Where the closes the pair is unknown, but increased risks to go much higher hurdle of 1.1450. If the fed won’t raise rates today, the Euro will fly by 1.15. If the regulator will raise interest rates by 25bps.p. and confirm a three-fold rate increase in 2019, the Euro will drop to 1.1340 for. Traders await the press conference of the head of the Federal reserve. From it will depend on where the Euro will be closed on Wednesday.
At 12:30 GMT Britain will publish consumer price index and retail price index for November.
At 14:00 GMT Britain will present data on changes in the index of industrial orders according to the Confederation of British industry in December.
At 16:30 GMT Canada will release the consumer price index for November in the US — the report on the change in the balance of payments for the third quarter.
At 17:00 GMT Switzerland will release the quarterly inflation report from the SNB.
At 18:00 GMT the U.S. will release a report on home sales in the secondary market for November.
At 18:30 GMT, the United States announced about change of stocks of oil according to the energy Ministry.
At 22:00 GMT the fed will announce the interest rate decision, RBA monetary policy statement and economic forecast.
At 22:30 GMT will be a press conference of the head of the fed Jerome Powell.