Comment on the situation on a market 17.03.14

Euro is overbought and can be decreased

Consumer inflation can have a massive impact on European currency today. Last month this led to rapid EUR increase, as it was supported by ECB decision to keep the same monetary policy. But last week Mario Draghi announced his concern regarding EUR growth saying that the Euro Zone economy struggles because of that. It had a massive impact on Euro currency. So in case consumer inflation will remain on the same level or will decrease rapid EUR drop against USD is expected.

What is more, traders believe that US Federal Reserve on the next meeting this week will take the decision to continue further stimulus reduction for another $10bl  ($55bl in total). And this will be another positive sign for USD

Semen Kamensky​