The Euro got support and rose sharply after the statements of Powell
On Wednesday U.S. session, the Euro rose sharply against the U.S. currency. The dollar index tumbled after the speech of the head of the fed Jerome Powell. He said that the main interest rate is slightly below the neutral level. This statement surprised investors because in early October, Powell said that the fed rate are “far” from neutral. His statements have reinforced the talk that the pace of rate hike may slow down.
According to CME FedWatch Tool, the probability of a rate hike by 25bps.p is 82,7%. Currently, the range for the Federal funds rate is 2.00 to 2.25%.
At the end of the day the Euro rose against the US dollar by 100 pips, till 1.1370. After a small pullback buyers in Asia has shifted the maximum 1,1392. The market situation is contradictory. On the one hand, the buyers opened the way to 1,1420, and with another — formed a strong resistance. Hour markers suggest a correction. You need to follow the 1.1368. If the level does not stand, the pair’s decline will accelerate 1.1350
At 11:55 GMT Germany will publish data on changes in unemployment and unemployment for November.
At 12:30 GMT United Kingdom will present reports on the change in the volume of net loans to individuals, the number of approved applications for mortgage and consumer lending in October.
At 13:00 GMT the Euro zone will release the consumer confidence index, the index of sentiment in the economy, the index of business optimism in industry and the index of business sentiment for November.
At 16:00 GMT Germany will publish consumer prices for November.
At 16:30 GMT Canada will report on the change in the balance of payments for the third quarter. The U.S. will release the price index of personal consumption expenditures for October, and will announce the change in personal income and spending for October and the number of initial claims for unemployment benefits.
At 18:00 GMT the U.S. will report the volume change pending home sales for October.
At 22:00 GMT the United States will release the FOMC minutes.