On the first day of the week inactive trade continued. Dollar retreated – the start of dialogue between Greece and Brussels (decreased sharpness of rhetoric) and weak production ISM in the U.S.A. played their role. Still, this retreat doesn’t look significant; it is rather like shift of consolidation to upper boundary of the range.
Several hours ago the Reserve Bank of Australia has finished its session on monetary policy. Market’s fears were confirmed – the Bank lowered the discount rate, what provoked fall of Australian dollar to new minimums.
Other events of this day aren’t so significant. In the Eurozone it is producers’ prices and consumer inflation in Italy. At this moment there are no improvements, but it has long been no news. After the launch of European QE it needs some time to evaluate its influence on inflation indicators. In the U.S.A. production orders and ISM of New York will be published. Dollar seems to face a dark period – forecasts aren’t optimistic. It will be difficult for dollar to continue growth under the lack of fundamental support. Probably, the market can’t determine its position before the publication of report on labor in the U.S.A. on this Friday, and dollar will continue trading in the range, though what concerns some currency pairs, noticeable movements are possible against local news background.
At yesterday’s trades British pound looked weak. Good production PMI couldn’t prevent fall of the pair. Today building PMI will be published. The forecast is negative and it can become a signal for further fall of pound below 1.5000.
We stay observers. EURUSD pair remains within the range 1.1100 – 1.1420, and uncertainty in choice of further movement direction is still retained.
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