The Euro is not afraid of heights. Overview for 28.06.2017

The main currency pair broke the high it reached last August and aims for this year’s peak.

The EUR/USD pair is not afraid of heights, but what is happening on the currency market right now confirms the opinion, which was said and repeated before: at the moment, in the eyes of investors the Euro looks more attractive than the USD, and the today’s highs are not the limit. The current quote for the instrument is 1.1363.

The Euro hasn’t been so expensive since last August, but there is another important level ahead, 1.1428, that was reached on June 23^rd 2017. If the bullish rally continues, the above-mentioned level might be broken pretty soon.

Investors are still responding to optimistic comments made by Mario Draghi, the ECB President. According to his words, the economy of the Eurozone is expanding, so the market players come to the conclusion that the regulator may decrease or close the QE program by the end of the third quarter of 2017. In the past, there was no basis for such conclusions, but now this scenario may be turned into reality on the tip from the ECB itself.

The Fed Chairman, Janet Yellen, didn’t tell anything important for the currency market; her speech wasn’t about the monetary policy at all. However, the FOMC Member Harker, who delivered his speech earlier, spoke for both her and himself, and said that he agreed to the way the key interest rate should be increased. In Harker’s opinion, the fact that the inflation rose a little bit is temporary.

According to market expectations and CME observations, the next increase of the rate in the USA may take place in the middle of autumn. The chances are 54.4% and they are higher than last week.

RoboForex Analytical Department