The U.S. Dollar is trading around Friday's high while the basket of 6 major currencies is on its way to the second profitable week, waiting for another GDP report from the USA. The dollar rate support a wider spread between the German and American bonds yields.
According to FortFS experts, the American GDP is going to gain 1,8% year-over-year in quarter 2 as opposed to 3,1% in quarter 1. Anything below this level is expected to signal that the Fed is likely to ease its monetary policy more than once this year, which is expected to trigger a weaker dollar. On the contrary, if the GDP sees a value over 2%, the chances of seeing the Fed easing their monetary policy will decrease in this case, which will trigger a stronger dollar.
All Eyes On The Fed
At this point, it's clear that the Fed's meeting minutes will be the key event of the next week when it comes to the U.S. Dollar rate. The investors were disappointed by the ECB's monetary policy during the recent meeting which is why they will be focused on the results of the Fed's meeting. THe meeting is expected to end up with a 0.25% interest rate cut, for the first time since 2009.
EURUSD is trading close to 1.1140 after rebounding from the 2-year low located at 1.1100. If the price does break below this major level of support, we may well see a considerable move down, maybe all the way down to 1.0820, 1.0500, and even 1.0340. However, at this point, it's still probable that the currency pair will recover from the level of support and move back to the resistance area around 1.1285.
