Trading on the foreign exchange markets Thursday was very dynamic. Tension of the last days has resulted in attempts to pound and the European single currency to test the strength of local support. Driver of these movements served as a data packet on business news for the euro area and the UK's GDP in the second quarter. In the European session, the indices were published research institute IFO. The ratios presented in this time were worse than expected, it is somewhat disappointing investors. After a short period of volatility in the local maxima of the euro and the pound headed down.
EUR/USD at the time of the release of data on business activity showed the 1.3236 mark and went to test lows around 1.3177 . In the European session to overcome this level of support for the pair did not succeed. In the beginning of the U.S. session, the euro began to recover their positions. Returning to the initial levels, the pair almost to the end of the trading day was in consolidation. However, in the last hour there was significant demand for the euro against the U.S. dollar. Quotes pair reached the 1.3295 level and is now trading near the mark. This dynamic end of the session in the United States due to the publication of the report the FED.
The data on the FED's balance sheet just rocked the markets yesterday. Over the last week balance increased by 37 billion dollars. A total volume of purchases for the month was 94 billion dollars given the fact that the standard amount of monthly foreclosures - that's 85 billion dollars, and that the FED recently announced its readiness to begin reducing the quantitative easing program, these figures make markets nervous. Some participants began to seriously consider the forecasts of economists who do not believe in the imminent reduction incentives. Thus, the FED's balance data suggest that there is a need for more action.
All this while putting strong pressure on the dollar. Not only that Ben Bernanke has become more lenient in its latest comments, as it turns out also that while the FED simply no way to reduce QE. The situation becomes more murky. Do not forget about the upcoming change of the head of the FED. Ben's policy was aimed at weakening the dollar and the support of Wall Street. So his departure from the post of the chairman may be a weighty argument in favor of the U.S. currency. Prior to the next meeting of the Federal Reserve is two trading sessions. It is hardly necessary to count on significant movements in markets before the publication of the results of the meeting.
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