During the trading session on Tuesday, the European currency rose against the dollar after weak data on the Richmond FED manufacturing activity. Report of the Federal Reserve Bank of Richmond (FRS - Richmond) showed that the producers of the central Atlantic region of the U.S. this month reported a decline in activity. Calculated by the Federal Reserve - Richmond index of current business conditions in the manufacturing sector in July fell to -11 from 7 in June, and the June value was revised downward. The index values ??below zero indicate a decline in activity. Meanwhile, the Eurozone came positive data on consumer confidence, the value of the index fixed at -17 and -18 analysts had forecast. Although consumer confidence remains in negative territory, the dynamics for growth also supported the euro.
The EUR/USD was able to overcome resistance at 1.32 and is now likely to be aimed at the level of 1.33 . During the Asian session, the euro fell back to the maximum value - 1.3238, up to 1.32 level which is now acting as support. Yesterday's closing day candle was above $ 1.32, indicating that the increased strength of the bulls, and the prospect of further growth. If the EUR/USD will slip below 1.32 is likely to roll back a couple deepens to reach 1.31 . At the moment the market is dominated by the bulls, but they face the ordeal of near 1.33, because that is where is the line long-term downward trend.
An interesting survey conducted agency Bloomberg, he showed that the expected reduction of the quantitative easing program to 65 billion dollars in September. The survey was conducted July 18 - 22. Half of those surveyed economists expect the onset of decline of the "quantitative easing" in September. That's more than 44 % in the June survey. However, the yield on 10-year Treasury bonds does not reflect the opinion of the majority. Yields continue to decline from a high of almost two years after the announcement of Federal Reserve Chairman Ben Bernanke that the reduction of redemption of bonds will not be a tightening of monetary policy. 15 % expect to reduce the start of the program of "quantitative easing" the FED meeting on October 29 - 30. Half of waiting until the "quantitative easing" in the second quarter of 2014 is also worth noting that none of the respondents expect to reduce redemption of bonds as a result of the FED meeting on July 30 - 31.Social button for Joomla