EURUSD is above parity, waiting for decisive steps of the ECB.
On Thursday, the market major continues its advance. The current quote is 1.0070.
The main reason for the optimism of the EUR is rooted in the hope that the meeting of the European Central Bank scheduled for today will end up in some bright decisions and statements. Particularly the market counts on an increase in the interest rate by 75 base points at once, to 2.00% annual from the current 1.25%.
It is a huge intrigue whether this will come true.
The problem is, inflation pessimists are becoming more and more numerous. Such an increase in the interest rate will not necessarily be enough to cool down inflation expectations and enhance confidence in the monetary policy of the euro zone. Anyway, let us see what will actually happen.
If the ECB comes up with conservative decisions, the EUR will crash.
As for the US, they will publish today the first GDP estimation for Q3. The consensus forecast suggests growth by 2.3% after the preceding decline by 0.6%. Strong statistics will support the dollar and weak statistics will make the market flee from risks. Apart from the GDP report, the durable goods order volume in September will be presented today. This index is very unstable and volatile, so studying its components separately makes more sense.
Source: Roboforex
