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Old 07-12-2017, 04:28 AM
InstaForex Gertrude InstaForex Gertrude is offline
Join Date: Oct 2015
Posts: 51
The market is at rest

Yesterday's data on the US and the speech of the President of the Federal Reserve Bank of San Francisco, John Williams, did not give proper to the US dollar.

According to the report of the research group, Conference Board, the index if employment trends in the US for May of this year was revised down to 133.32 points from 133.70 points.

The growth in consumer lending in the US also indicates a stable situation in the US economy.

According to the data provided by the statistics agency, consumer lending in the US for May this year increased by $ 18.41 billion following a growth of $ 12.9 billion in the previous month of April.

Yesterday's speech by the Federal Reserve representative, John Williams, did not lead to major changes in the market.

Williams said that if inflation slows down, it will be in favor of further gradual tightening of monetary policy. This means another increase in interest rates this years is a reasonable baseline scenario.

He also noted that at the present time, there are a lot of signs that the economy is strengthening including the growth of salaries in the US which is in line with expectations. In his opinion, the US fiscal policy is on an unstable path and the reforms that the White house wants to hold will help to improve the situation.

With regard to the reduction of balance, Williams said that it makes sense to begin the normalization as soon as possible this year.

In general, the Federal Reserve representative along with his colleagues did not say anything new. Because of this, the market reaction to his statements did not follow.

As for the technical picture of the EURUSD pair, everything remains the same.

The support level at 1.381 is important since the current upward trend formed on last July 5 will depend on it. A breakthrough in this area will lead to the demolition of a number of stop orders and a decrease in the trading instruments that are already in the support level of 1.1330. If the buyers of the European currency manage to tighten it to the middle level of the channel at 1.1410, then it is likely that the bull scenario will continue to update with the monthly highs of 1.1440 to 1.1470.

Analysis are provided by InstaForex
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