The EUR/USD pair is “pulled” in all directions. Overview for 15.12.2017

On Friday morning, there are several opposite catalysts for the main currency pair, which are equally strong.

The EUR/USD pair is at the crossroads. On one hand, yesterday the European Central Bank one more time, probably for slow-witted, emphasized its intentions to continue the QE program as long as they have to. This wasn’t in favor of the European currency. On the other hand, the USD is feeling nervous in anticipation of the decision on the taxation system reform. All this taken together makes the main currency pair move in a very narrow trading range. The current quote for the instrument is 1.1790.  

First things first. The ECB’s monetary policy will remain intact. In the comments, the regulator’s Board said that they would continue the QE program as long as they had to. We remind you that from January 2018 the net asset purchases are intended to run at a monthly pace of 30 billion EUR until the end of September next year, or beyond, if necessary.

Mario Draghi made the Euro move. During the press conference, he said that the ECB raised its inflation and economic growth forecast for 2018. This provided some support to the Euro, but then investors turned to the QE program duration once again.

Secondly, the USA and its taxation system reform. Still, there is no consensus between the US Senate and the House of Representatives., who are working together on the project to be signed later by the President Trump. In this case, a simple majority of votes, but two senators from the Republican Party demanded to introduce several more amendments to the document. It is taking a lot of time, considering the fact that there is almost no time left. Apart from this, disagreement inside the Senate creates a real threat to proposed law. Due to this, the USD is quite tensed.

RoboForex Analytical Department