Yesterday, the head of the European Central Bank, Christine Lagarde, announced her decision to follow the Federal Reserve's step on adjusting target inflation, so now, the regulator has a new strategy which allows inflation beyond 2.0% in the medium term. According to Lagarde, this is done in order to compensate for a period of low price growth, thus, the ECB will closely monitor the situation. If such a strategy turns out to be really credible, it will be introduced to the monetary policy for a longer-term, in order to stabilize the economy in the future.

Meanwhile, US Secretary of the Treasury, Steven Mnuchin, has once again expressed his disagreement on the proposed $ 2.2 trillion stimulus package presented by the Democrats. He said that the program put forward by the presidential administration is much cheaper at only $ 1.5 trillion, and in addition, the package includes a second round of incentive payments to the population. Nonetheless, negotiations will resume today, during which Mnuchin will meet with House Speaker Nancy Pelosi.

With regards to the interim budget of the United States, an 84-to-10 vote in the Senate resulted in the approval of the $ 1.4 trillion bill, so now, US President Donald Trump just needs to sign it before it can be enacted. The bill will be valid until December 11.

Another pleasing report was the improving data in the US private sector, which, according to the ADP, has recorded a jump in jobs by 749,000 in September. This indicates the rapid recovery of the US labor market, which is very favorable to the economy.

The final data on the US 2nd quarter GDP was also revised for the better, noting a contraction of only 31.4%, lesser than the previous estimate of 31.7%. Compared to the 1st quarter, GDP fell by 9%.

As for the 3rd quarter, economists are positive that the US economy will show the most rapid growth, about 32.2%. But in the 4th quarter, it will be less active, and is unlikely to compensate all the losses in the first half of 2020.

In the meantime, the US housing market continues to improve every month, as according to a report for August, real estate contracts jumped 8.8% from the previous month, so much higher than the expected rise of only 3.2%. Compared to the same period last year, the indicator increased by 23.2%. These numbers are not surprising as very low mortgage rates are driving demand and boosting sales.

However, despite these very good statistics in the United States, the European currency still won over the US dollar, and this is because the bulls have managed to overcome several important resistance levels in the market. They brought the euro close to a quote of 1.1755, a breakout above which will increase demand for the currency, pushing it even higher to a price of 1.1800 and 1.1840. But if the euro drops instead below the level of 1.1710, price will decline to a quote of 1.1660, and then to 1.1610.