The euro/dollar is once again trying to grow
21.05.2014
The main currency pair once again makes an effort to grow, but it is doubtful that the instrument will activate before the publication of the Fed "minutes".
Euro / dollar is again trying to recover, but with the last few trading ideas, these attempts failed - the Asian growth in the morning will level out by noon under the influence of statistics and later the pair will go into the negative territory. A key factor for the euro currency pressure remains the position of the European Central Bank, which mentioned a high EUR rate as a serious risk. The ECB usually does not use the verbal interventions mechanism, but this situation is twofold: on the one hand, there is the need to stimulate the growth of inflation, but throwing money into the market would not be desirable. On the other - time needs to be taken to see whether it would be enough to cool off the euro/dollar using only verbal sanctions, to, once again, restart inflation growth.
Today there will be an interesting release on consumer confidence for May in the euro area (15.00 GMT). Expectations suggest a slight improvement in the index, but it is not a fact that the predictions will coincide with reality.
Moreover, at 19:00 GMT the publication of the last meeting of the Federal Reserve System will be released. The text of the "minutes" will be wholly interesting and the investors will fully scrutinize it for any unobvious nuances of the monetary policy of the Fed.
The "bears" are still very strong in the euro/dollar, so do not rule out the probability of the decrease of the pair to 1.3700 and further to 1.3680.
RoboForex Analytical Department
Euro / dollar is again trying to recover, but with the last few trading ideas, these attempts failed - the Asian growth in the morning will level out by noon under the influence of statistics and later the pair will go into the negative territory. A key factor for the euro currency pressure remains the position of the European Central Bank, which mentioned a high EUR rate as a serious risk. The ECB usually does not use the verbal interventions mechanism, but this situation is twofold: on the one hand, there is the need to stimulate the growth of inflation, but throwing money into the market would not be desirable. On the other - time needs to be taken to see whether it would be enough to cool off the euro/dollar using only verbal sanctions, to, once again, restart inflation growth.
Today there will be an interesting release on consumer confidence for May in the euro area (15.00 GMT). Expectations suggest a slight improvement in the index, but it is not a fact that the predictions will coincide with reality.
Moreover, at 19:00 GMT the publication of the last meeting of the Federal Reserve System will be released. The text of the "minutes" will be wholly interesting and the investors will fully scrutinize it for any unobvious nuances of the monetary policy of the Fed.
The "bears" are still very strong in the euro/dollar, so do not rule out the probability of the decrease of the pair to 1.3700 and further to 1.3680.
RoboForex Analytical Department
Attention!
Forecasts presented in this section only reflect the author’s private opinion and should not be considered as guidance for trading. RoboForex bears no responsibility for trading results based on trading recommendations described in these analytical reviews.