Trading session on Wednesday ended lower for most currencies against the U.S. dollar. Quotes reduction was of corrective in nature, and now many currency pair rebounded and reached new highs. Today on Thursday came the news block on the volume and the peripheral Eurozone countries. In the evening, market participants expected data on the economic state of the United States, namely, data on the trade balance, sales of new buildings and unemployment benefits. Most likely, the economic indicators will have a mixed performance, greater attention should be paid to data on the labor market and the housing market.
The European currency on Wednesday dropped to a level of 1.3740 against the U.S. dollar. Later the pair EUR/USD was able to win back the lost ground at the expense of data on the level of consumer confidence. Also helped the euro is clearly bullish for the pair EUR/USD, at the moment the pair is trading at the opening of the day. During the Asian session, the European currency managed to reach a value of 1.3820, but consolidate above 1.3800 failed due to release the news block. The index of business activity in a number of countries in the euro area has not changed or has changed downward, it put pressure on the single currency. The level of support for the pair EUR/USD is at 1.3740, resistance area centered near the 1.3800 mark. The pair above 1.3800 will open the way to 1.4000 psychological level. Technical indicators also point to an upward trend of the European currency.
The British pound after falling to a level of 1.6115 during yesterday's trading, strayed from the level of support and is currently trading around the level of 1.6180 . Previously, GBP/USD pair showed strong growth and was able to reach the level of 1.6220, then began to decline. The dynamics of trading GBP/USD pair was under the influence of the Bank of England and the decisions adopted by the monetary policy committee. In general, the program of asset purchases and the value of the interest rate remained at the same level, the decision was taken unanimously. It may be noted that the UK economy is steadily recovering, but the interest rate hike is expected no earlier than the unemployment rate will fall to the target level of 7 %. Recall that the current unemployment rate is 7.7 %. On the technical side pound temporarily turned sideways with the boundaries of 1.6115 and 1.6250, respectively.Social button for Joomla