The euro was still fairly stable on Tuesday, even after the stimulating words of Federal Reserve President Jerome Powell on Monday evening and the keen vision of the Fed President of St. Petersburg. Louis James Bullard preceded.
The rate of the dollar does what the Fed wants. After the Fed’s interest rate decision last Wednesday, the euro has steadily dropped to its current level and it seems that the market still sees room for $ 1.17, but not yet and the Fed is fine with that.
A zone between $ 1.1930 and $ 1.1950 is a new resistance for the euro. This has created a new balance for the euro.
Traders believe that in the coming weeks, even until the Fed’s next interest rate decision, attention will be constantly focused on speeches and performances by Fed directors. This is also the case today with Powell, now in front of a committee of the House of Representatives, for which he has to answer for the coronavirus policy. His speech was published Monday night. The core message was that the Fed sees the recovery of the economy continue. The central bank wants to continue supporting the US economy as long as possible until the recovery is complete, Powell stressed.
In addition, a speech by San Francisco Fed President Mary Daly, New York President John Williams and European Central Bank board member Philip Lane will be monitored. Lane had previously noted the speed with which the euro gained ground against the dollar at levels that threatened to become unbalanced for the monetary union, thus weakening the euro almost immediately.
This week it could be exciting for the British pound. The Bank of England will release its interest rate decision on Thursday.
For this afternoon, the macroeconomic agenda is filled with preliminary consumer confidence in the eurozone in June and the sale of existing property in the United States in May.
The euro was down 0.2 percent on $ 1.1893 on Tuesday. The European currency recorded 0.2 percent higher at £ 0.8572. The British pound dropped 0.5 percent on Tuesday and stood at 1.3873 dollars. The dollar recorded 0.1 percent higher at 6.4744 Chinese yuan. Today, the dollar rose 0.1 percent and stood at 110.4690 yen.