The EUR/USD has risen slightly during today’s trading session as investors wait for the Federal Reserve Bank announcement regarding interest rates. It is widely anticipated that the Fed shall announce an interest rate hike, the first such hike this year. The currency pair also seemed unaffected by other financial data released today.
The greenback retreated slightly based on retail data released today, which was below industry projections. The data released indicated that US retail sales had risen by 0.1 percent in November, which was significantly lower than the expected 0.3 percent. The Producer Price Index also rose by 0.4 percent in November, which was significantly higher than the projected 0.1 percent.
The currency pair was largely unaffected by the retail sales data mainly because investors are anticipating the Fed announcement. However, the Euro is gaining ground over the greenback in today’s session.
The currency pair is likely to experience major movements if Janet Yellen and the Federal Open Market Committee do not raise the interest rates as expected. There is also significant uncertainty in the market regarding future monetary policies under president-elect Donald Trump.
Investors are expecting Janet Yellen and the FOMC to shed light on the direction of future monetary policies given that Donald Trump has stated that his government shall shift government expenditure towards different sectors of the economy.
The EUR/USD has been trading between 1.0609 and 1.0665. The currency pair was trading at 1.0656 as at 17:29 GMT.
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