The Euro is getting back to 1.20. Overview for 22.09.2017

22.09.2017

The main currency pair quickly recovered after plummeting because of the Fed’s comments and decision and right now is trading to return to its previous highs.  

The EUR/USD pair is growing on Friday afternoon. The current quote for the instrument is 1.1993.

There were a lot of statistical reports from the Eurozone today. France reported on the September reading of the Markit Manufacturing PMI, which increased up to 56.0 points after being 55.8 points and against the expected number of 55.6 points. The Markit Services PMI skyrocketed up to 57.1 points against the expected reading of 54.9 points. Germany also reported on the Markit Manufacturing PMI, which expanded up to 60.6 points. It is better than expected. The Markit Services PMI in Germany rose up to 55.6 points.  

Overall, the same indicators for the Eurozone were 58.2 and 55.6 points respectively. In both cases, the numbers are much better than expected.

So, the statistics was another reason for the EUR/USD pair to recover. But the main one is the facts. The Fed’s decisions relating to the rate increase and selling assets on its balance sheet were pretty expected and, as a result, already included in prices, so what we see right now is a correction. One should pay attention to capital markets when the Federal Reserve really starts the selling procedure, in October. In theory, the decrease in liquidity will force the USD getting more expensive, but “how much expensive” is the question to answer.

There won’t be much statistics from the USA this evening, so one shouldn’t expect the main currency pair to change its current tendency.

 

RoboForex Analytical Department

 

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Forecasts presented in this section only reflect the author’s private opinion and should not be considered as guidance for trading. RoboForex bears no responsibility for trading results based on trading recommendations described in these analytical reviews.