EUR/USD Takes Nosedive

Today, the American dollar moved quite unpredictably. After forecasts of an unlikely sharp rise of the US dollar, buyers of the greenback, on the contrary, increased the number of deals. Now, the EUR/USD pair is moving down to a week low, trading near 1.1750. There are a number of reasons for the downward trend of the pair. First of all, it is time to pay attention to the eurozone inflation rate. According to final estimates from Eurostat, consumer prices rose by 1.5% in a year, in line with market expectations. However, the inflation rate is still below the 2% target set by the ECB. Meanwhile, the German economic sentiment index failed to reach the forecasts. The indicator rose to 17.6 in October, defying expectations of an increase to 20.

Another significant factor that influences the EUR/USD pair is rumours about the forthcoming change of the Fed’s Chair in 2018. It was reported that the US president wants to see John Taylor, an economist at Stanford University, known for his hawkish approach, as the next Chair of the Federal Reserve. Meanwhile, on Thursday this week, Donald Trump is to meet with Janet Yellen to discuss appointment of the next Fed Chair, which will undoubtedly affect the movement of the US dollar.

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