Today the most traded currency pair has touched the 3-weeks low.
The single currency is trading at 1.0679 against its American counterpart. Analysts expect the pair to end this trading day at 1.0650. The market sentiment is dented by macroeconomic statistics from the euro zone. Germany revealed its unemployment data today. Reportedly, the number of jobless people declined by 30 thousand while experts anticipated a decrease of 10 thousand.
At the same time, the unemployment level in the biggest eurozone economy edged down to 5.8 percent from 5.9 percent.
Meanwhile, the inflation report from the eurozone posted downbeat figures. According to preliminary estimates, the consumer price index grew by 1.5 percent in annual terms after rising by 2 percent in the previous month.
The ECB officials intend to leave the interest rate unchanged for the time being. Bank’s President Mario Draghi said this month that momentary acceleration of inflation to the target level of 2% does not justify the rate hike. To tighten the monetary policy, the bank needs to make sure that the rise in prices is sustainable.
On the other hand, the Federal Reserve has more hawkish point of view. Some FOMC members have already hinted that 4 rate hikes are possible this year.
Though the possibility of this is quite low, investors grabbed this news and started buying US dollars.
InstaForex News, InstaForex, News, Forex, broker, брокер, новости, рынок, онлайн-трейдинг, online trading, ECN Forex-брокер, retail trader, ИнстаФорекс, Форекс, финансы, finance, forecast, business, прогноз, курс, курс валют, валюта, rate, exchange rate, USD/JPY, EUR/USD, euro, dollar, yen, pound, currency, currency rate