EURUSD reached stability on Wednesday after a volatile trading session the day before but investors do not relax.
The major currency pair had a pretty volatile Tuesday evening but is looking quite calm on Wednesday morning. The current quote for the instrument is 1.2080.
EURUSD was extremely active amid the total lack of important statistics from the USA, and this activity was caused by the comments of monetary policymakers. For example, the FOMC Member Lael Brainard said that American economic prospects were looking quite positive because the vaccination campaign was pretty aggressive, thus implying a quick defeat of the coronavirus pandemic. However, it doesn’t mean that the Fed will get rid of its stimulus programs soon.
Of course, Brainard admitted that onу day the American regulator would have the opportunity to revise its rates upwards but it would be rather slow. In the meantime, the programs will continue as expected until the Fed sees solid progress in achieving its goals.
Market players are very responsive to any information about a possible closure of American stimulus measures earlier than was expected. That’s why any reference to the fact that the regulator is not going to terminate its programs ahead of the game provokes stormy reactions.
Later today, the Euro Area and Germany are planning to publish the final report on the Services PMI for February, which is not expected to change much. However, the most interesting will happen later: the USA is starting to report on its labor market and the first indicator is going to be the ADP Non-Farm Employment Change, which may show 203K after being 174K the month before. The bigger the reading, the better for the USD.
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