Today there has been considerable increases, which were supported by a very weak US GDP reading (0.2% vs. 1%). Part of the market has come to the conclusion that a rate hike will be reached in time. Therefore, we saw the EUR / USD at 1.1189, after having pierced the important resistance at 1.1034 and 1.1090. However, the situation turned around when we met notes from the FOMC meeting. Here it should be noted that the Fed does not fear a slowdown in the economy and recent weak data are transient. September seems possible date to raise interest rates, which automatically strengthened the dollar.
Forecast for Thursday: Today, the currency pair has been strongly bought, and therefore we should see a correction but .... tomorrow, we have a whole packet of data from Europe and the USA. Therefore it may be quite high volatility. Of course, every good data from the EU and the worse the US will support the euro and vice versa.
From a technical point of view, the currency pair reached the resistance 1,1170-1,1220 mentioned yesterday, should turn south in the vicinity of 1,1034-1,1045. It is difficult to unequivocally determine how the currency pair will behave tomorrow because we can expect mood swings. A more likely scenario is a correction after the recent rally and then a retest recent highs.
Today's announcement the Fed is not conducive to the euro, and only new data from the US will help assess the real chances of interest rate hikes in September. Tomorrow should especially pay attention to the CPI and the unemployment rate in the European Union and on the number of initial jobless in the US.
Today, we have not received a clear answer as to the future direction in the medium term for the EUR / USD pair.
Forecast for Thursday: Today, the currency pair has been strongly bought, and therefore we should see a correction but .... tomorrow, we have a whole packet of data from Europe and the USA. Therefore it may be quite high volatility. Of course, every good data from the EU and the worse the US will support the euro and vice versa.
From a technical point of view, the currency pair reached the resistance 1,1170-1,1220 mentioned yesterday, should turn south in the vicinity of 1,1034-1,1045. It is difficult to unequivocally determine how the currency pair will behave tomorrow because we can expect mood swings. A more likely scenario is a correction after the recent rally and then a retest recent highs.
Today's announcement the Fed is not conducive to the euro, and only new data from the US will help assess the real chances of interest rate hikes in September. Tomorrow should especially pay attention to the CPI and the unemployment rate in the European Union and on the number of initial jobless in the US.
Today, we have not received a clear answer as to the future direction in the medium term for the EUR / USD pair.