Trading session was held on Thursday against the release of economic data that largely determined the movements of currencies. The European currency has strengthened by positive news from the eurozone, as well as due to the weakening of the U.S. dollar. Today is the last day of the week and as usual it ends at the most interesting - the currency pairs are suitable for highs and upper limits, which are strong resistance. Behavior quotes around these values determine the future prospects of the market as a whole.
The EUR/USD is growing all week, thus reaching the level of 1.3645 during yesterday's trading. By the end of Thursday's European currency retreated slightly from the highs. The growth of the currency pair EUR/USD in the second half of the day contributed to the publication of the index of business activity in the services sector. Data from the United States was different from analysts' forecasts, and for the worse. The PMI in service sector in September reached 54.4 in August, its value was much better and was equal to 58.6 . Labour market data also failed to support the dollar, the value of claims for unemployment benefits increased, but not significantly. Thus, U.S. data failed to stop the growth of the pair EUR/USD, on the contrary supported it.
Recall that the euro is on the way to the annual maximum at 1.37 . Commerzbank analysts believe that the European currency will move further to the level of 1.38 . Investors bulls pair EUR/USD is quite a lot and the level of 1.37 more likely to be broken. We believe that the resistance at 1.37 would create difficulties for the bulls, all that we have seen the last few weeks is a sharp rise in the euro and the pound, even the Australian dollar broke out of constantly decreasing trend. However, we should not forget that the growth should always be a minimum of correction, pullback, and strong levels of resistance that are looming on the horizon, many currency pairs can be starting point for corrective movements.
Stop the operation of the control unit in the United States, of course, has a negative impact both on the economy and its currency. The stagnation in employment may result in an increased volume of purchases of assets, which again weaken the dollar. The issue with the debt ceiling increase, too, need to be addressed as soon as possible. Otherwise October 17-th largest economy in the world will not be able to pay its debts.Social button for Joomla