FXTM Online Analysis Department.

The euro has temporarily stabilized

On Monday morning the main currency pair remains neutral, but for how long? This week, the Federal Reserve will once again confirm its monetary steps, and new lows are not far off.

The euro/dollar on Monday morning is even trading with a symbolic increase, if it can be called a small deviation from the twelve-year lows.

There will not be much statistics today: the United States will present data on the index of manufacturing activity from the Federal Reserve Bank of New York in February, and later on the industrial production figures for last month will be released. In the afternoon, the head of the European Central Bank Mario Draghi will deliver a speech.



The main speculative aspect that plays in favour of a new round of falls in the euro/dollar, still remains the expectation of growth in the spread between the ECB and the Fed this year. The faster the Fed will begin the phase of tightening in monetary policy, the further the main currency pair will fall.

During the second week of March, the euro/dollar weakened by more than 3%, the drop this week can be comparable. All the attention is on the next meeting of the Federal Reserve, which starts tomorrow.