The beginning of the week was very quiet due to holidays in several countries at once. Against the background of calm news background most currencies were consolidating in narrow ranges.
Today’s news background consists mainly of European events. In the Eurozone it is final data on inflation in Germany and ZEW report on moods in business environment. Although forecasts aren’t very optimistic (inflation data as well as moods can be revised downward), still, the main issue is US rates now, and the market looks primarily to American statistics. The market can perceive European negative calmly, especially if it appears to be not as bad as it is expected. Therefore, today euro can continue growth in spite of weak statistics. The same is true for British inflation. There forecasts are pessimistic too. However, against the background of relative weakness of dollar, these factors are hushed now. Still, strong collapse of dollar isn’t expected. In the evening publication of the report on US budget for September is expected. By the end of financial year it is usually executed with a surplus. We presume that today moderate retreat of dollar will continue.
Now we still keep long position in the pair EURUSD with a desire to close the position above 1.1400.
Any opinions, advice, news, research, analyses, prices or any other information presented on this webpage is provided as general market commentary and does not constitute investment advice. "Vector Securities" shall not be liable for any loss, including loss of profit, which may arise directly or indirectly from the use of this information.