On Thursday, the major currency pair is consolidating after a pretty volatile trading session yesterday.
EURUSD got into the turbulence zone yesterday, but investors calmed down quite quickly. The current quote for the instrument is 1.1070.
Investors’ attention is still focused on US-China trade talks. The talks were put on hold, which makes market players very nervous. To get things even more complicated, the US Senate passed a bill that implies annual confirmation of the Hongkong autonomy. Beijing already stated that it would brook no interference into the country’s internal affairs from any third parties, and this story might complicate further trade negotiations. It may well be that the agreement won’t be signed until the end of this year, thus increasing investors’ demand for “safe haven” assets.
The FOMC Meeting Minutes published yesterday says that there is no need to continue cutting the rate unless the country’s economy gest much worse. The regulator said it believed that the external uncertainty got a bit lower and called the previous rate cut insurance against economic slowdown.
Today, the macroeconomic calendar offers the Existing Home Sales report for October, which is expected to show 5.49M after 5.38M the month before. Improvement in this component may provide support to the USD.