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    Today the Eurozone GDP and US retail sales are on the scales

    Today the Eurozone GDP and US retail sales are on the scales
    Yesterday minor players faced difficulties. Market sharks hunted for them, constantly changing movement directions and confusing own intentions. This all against the background of contradictory comments by representatives of main Central Banks. In the first half of the day a new attempt to press euro through below 1.0700 was made again after Mario Draghi’ s statement about readiness to increase support to economy in case of necessity in European parliament. Still, bears had not enough strength to fix lower. Besides, contradictions existing the ECB became visible – later Bundesbank head Weidmann claimed that widening of quantitative easing programs is possible only in exceptional cases. In the second half of the day, speeches of the Fed representatives were in the focus of attention. There is no unity. Among five representatives, only Bullard supported definitely increase of rates, others were not so distinct, and Yellen neglected this question. It made dollar bulls to pass positions slightly. In the middle of American session unrest strengthened in stock markets. Fall of energy prices speeded up, what caused decreased of stock indices. Players remembered that euro was fund currency and pair managed to break through above 1.0800. 
    On the final day of the week, market players have to difficulties of choice. Today there are two main events – GDP for the 3rd quarter in the Eurozone and US retail sales. It is possible that they will also provoke multidirectional movements in the market. Although forecasts on GDP aren’t positive, still, they are stable and point at possible recovery of economy. It is positive for euro, and the pair can renew weekly maximums. In their turn, retail sales will show how active consumers are, what can facilitate speed-up of inflation. In case of good retail sales market’s mood can sharply change in favor of dollar.
     
    Trade tactics:
    Today EURUSD pair has opportunities to renew weekly maximums. Still, there is no talk about market reversal – descending trend is still in force. Dollar will probably remain favorite until the Fed’s session. For today, we consider renewal of short positions in the range 1.0840 – 1.0870 and stop is at 1.0950. In case of a pair decrease of more than 30 points from the entry point, rearrange stop at the entry point. 
     
    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. 

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