Dollar still faces difficulties and bulls can’t change the situation in own favor. Players are inactive, waiting for FOMC session. Yesterday American statistics didn’t meet forecasts, all indicators were worse than predicted. After that dollar bulls started to pass their positions, though this retreat was limited. Uncertainty is retained.
Today there are several economic reports, which are able to facilitate players’ activity, still, there is no guarantee that it will change balance of power considerably. British pound has best initial positions. Today the data on inflation will be published, forecasts are moderately positive, in case they will be accurate, then pound can try to test May maximums in the range 1.5800. For main rivals of the exchange market euro-dollar the reaction will be about the question where it is worse. In the Eurozone German institute ZEW will publish the report on moods in business environment. After maximums were reached in March-April, moods have started to decrease and analysts hope that this tendency will continue. In their turn, forecasts on new houses laying and building permits in the U.S.A., after they reached annual maximums, promise some rollback too. As a result, this day can be quite restless with multidirectional movement of the market during the day and frequent change of directions.
We stay observers. From our point of view, euro’s prospects are more preferable, but it is difficult to find the point for entry. The pair is almost in the middle of wide range 1.1050 – 1.1400, stops are to be set too far. Incorrect assessment of the situation will provoke excessive losses.
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