EURUSD rose again. Overview for 06.03.2020
On Friday morning, the major currency pair updated the high of August 2019.
EURUSD is once again the “man of the hour” for bulls. The current quote for the instrument is 1.1227.
The factor which is currently against the USD is investors’ fears of another rate cut by the US Federal Reserve. This is how they are probably thinking right now: if the Fed unexpectedly decided to cut the rate without any warnings, it means that the regulator and the White House know something about possible risks for the American economy. This, in its turn, indicates that the Fed may revise the rate pretty quickly if it is necessary.
As a result, the multi-month-long stability of the American currency is shattering.
The current market expectations imply that the American regulator may cut the rate again by 25 basis points during its scheduled meeting in March. Or by 50 basis points in April. Indeed, this may easily force EURUSD to reach 1.14.
The scheduled meeting of the US Federal Reserve is on March 18th and 19th.
The statistics published yesterday showed that the Factory Orders lost 0.5% m/m in January after adding 1.9% m/m the month before and against the expected decline by 0.2% m/m. However, the indicator may have been influenced by a seasonal factor, which is quite logical.