The Fed's monetary policy meeting was in focus this week. The central bank noted that that an interest rate hike in December is still on the table.
But it seems unlikely as the U.S. economic data showed no significant improvement. The U.S. preliminary gross domestic product increased by 1.9% in the third quarter, missing expectations for a 1.6% gain, after a 3.9% rise in the second quarter. Personal spending rose 0.1% in September, missing expectations for a 0.2% gain, after a 0.4% increase in August. It was the smallest increase since January. The job creation also slowed down.
There are also no signs that the U.S. inflation accelerates.
The foreign exchange market is likely to remain volatile as market participants will continue to look for further clues for the Fed's monetary policy.
It is likely that the currency pair EURUSD will test the level at $1.1100 or at $1.1200, if the U.S. economic data will negative and there will be no negative news from the Eurozone.
If the U.S. economic data is positive and in case of the negative news from the Eurozone, the currency pair EURUSD may test the low of October 28 at $1.0896.
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