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    EUR/USD: the pair continues to decline on 25.03.2016

    The USD continues to strengthen in the currency market today amid increased expectations of the market participants of the monetary policy tightening by the US fed in April. Feasibility of adopting such decision was shown by some executives of the US central bank. President of the US fed in St. Louis, Mr. James Bullard said yesterday in the interview with Bloomberg Television, that there are some factors which make the rise in the interest rate possible in April. Mr. Bullard also said that statistics for the period from December to March was consistent with the expectations of the bank. If future US macro-economic statistics will meet the US Fed expectations, monetary policy tightening in April can become more feasible. Mr. Bullard also said that the plan regarding interest rate has remained unchanged. Next rise in the interest rate can take place very soon if economic performance will meet the forecast.

    The pair EUR/USD and European indices are under pressure from new terrorist attacks in Brussels. Since Tuesday after the explosions in Brussels the pair EUR/USD has lost over 80 points. The decline in the pair has been lasting for the seventh day despite ambiguous US data. As it became known the number of orders for durable goods fell to 2.8% in February (against the forecast of -2.9% and the previous level of 4.2%).

    Today’s news will include US data atв 14:30 (GMT 2) on GDP for Q4 (final release) and indices of personal expenses in Q4. If the data will be below expectations, the movement in the pair with the USD, including EUR/USD, may change. Although it is expected that the data will meet the expectations

    Volatility in the market will increase in the time of the news release. However, the volume of trades will be low as in advance of the catholic Easter and Good Friday the exchange floors of Europe and the USA will be closed.


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