Uncertainty associated with the vote on the reform program of the Greek parliament and a better US data supported the dollar today. The course after piercing the 1.10 level headed toward the first support at 1.0964 and then tried to bring the supply to test support at 1.0916. Minimum recorded at the level of 1.0929.
Today, Janet Yellen presented a semi-annual report on. before the Committee on. Financial Services House of Representatives in Washington. The head of the Fed stressed that recent readings macroeconomic allow you to hike interest rates later this year.
Economic calendar for Wednesday:
11:00 EUR Core CPI (y / y)
11:00 EUR CPI (y / y) (Jun)
11:00 EUR CPI (m / m) (Jun)
11:00 EUR Trade balance (May)
13:45 EUR decision on interest rates (Jul)
14:30 USD ascendant declared unemployed
14:30 EUR ECB Press Conference
16:00 USD Fed Statement by the President Janet Yellen
16:00 USD Industrial Index by Philadelphia Fed (Jul)
16:00 USD Philadelphia Fed report dot. Employment (Jul)
22:00 USD Net Long-term TIC Transactions (May)
Tomorrow a meeting of the European in Frankfurt, Germany and President of the ECB press conference. It is the most important figure of the week, investors' eyes will be focused on ECB President, who will have to summarize recent turmoil in Greece and to introduce new macroeconomic projections. Personally Mario Draghi is quite skeptical of further assistance, due to the lack of successful reforms in Greece.
Also tomorrow, once again perform Janet Yellen. The head of the Fed submit semi-annual report on before the US Senate Banking Committee, in Washington, DC, USA. Certainly repeat today the words of a possible interest rate hike later this year. Investors will unite the occurrence of tomorrow's US data. Better data will confirm correct Janet Yellen and awaken your appetite to raise interest rates in the US which should lead to the strengthening of the dollar.
Forecast for Thursday:
From a technical standpoint currency pair reached an important support 1,0916-29, whose puncture could have serious consequences in a wider period of time. After the recent decline should see a small correction in the vicinity of 1,0954-1.10 . Demand should not overcome the level of 1.10 which should lead back to today's lows. In the event of insurmountable level of 1.0916 opens the way to a much lower price levels towards 1,0865-80 and 1,0818-25 (minimums of May 27).
Note: today late in the evening the Greek parliament will vote on approving the agreement, which was developed at the last meeting on Monday. All rumors can lead to strong pulses. This should be considered in its investment strategy.
Tomorrow, during the conference, Mario Draghi, may be the next wave action . People who are afraid to risk too much, I would suggest to stay out of the market until the clarification of the situation on the markets.