On Monday morning, the main currency is trading around the 1.08 mark, there is no important statistics today, and the market prefers not to be overly active.
On another March Monday, the single European currency is trading steadily in tandem with the US dollar. The market participants still mainly focus on the soft attitude of the Federal Reserve on interest rates.
Investors previously opened a large number of long positions in the dollar due to expectations that the Fed in mid-summer 2015 will start the growth phase of the interest rate, thereby increasing the spread between the interest rates of the Fed and the ECB.
Last week, Janet Yellen, the head of the Federal Reserve, according to the results of the March meeting noted that an expensive dollar prevents revenue growth for companies, exporters, and is exerting pressure on the parallel conjugate number of sectors. In this light, the Fed will probably prefer to wait some time before raising rates.
The market was not ready for such a turn of events - at the moment, the euro rose 400 points, and later corrected, but the fact remains that the main currency pair has moved away from the "bottom" of the last twelve years.
Today, the market participants will be waiting for the speech from the head of the European Central Bank Mario Draghi and the outcome of the meeting with Angela Merkel and Mr. Tsipras. The macroeconomic statistics calendar for Monday is not overfilled: sales data for second homes in the US in February and report on consumer confidence in the euro area in March.
RoboForex Analytical Department