Pretty good data on new home sales in the US, which grew by 3.5%, could not lead to the strengthening of the dollar against the euro. This preliminary data on the index of business activity were neutral, so that they could not affect the market. Moreover, the market simply ignored the report of the American Petroleum Institute, which indicated to reduce stocks of crude oil and petroleum products by 8.3 million barrels, which, however, had no effect on the cost of oil.
The reason for the incredible stability of the European single currency lies in today’s meeting of the Open Market. On the market there is confidence that the Fed rate is left unchanged, and the question remains open about its increase until the end of the year. However, the Fed has almost no choice but to raise rates, as labor market conditions, combined with low inflation points to the growing imbalances. As a result, if nothing is done, it will lead to loss of control over the situation, which will lead to the uncontrolled surge of inflation, then the Fed will have to take drastic measures and raise rates sharply. But at the moment, due to the strong US debt load, and the world economy, such a step would lead to catastrophic consequences. In other words, the Fed has no choice but to gradually tighten monetary policy.
However, the Fed hesitation to raise the rate now will trigger a weakening dollar and the euro / dollar will rise to 1.1030.

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