According to the published last week data, the unemployment rate in the Eurozone remains high, and producer prices remain negative dynamics, not giving a reason to hope for the acceleration of inflationary pressures in the medium term. The service sector in the Eurozone is in a very good condition, and data on retail sales have exceeded the expectations of analysts. However, the euro was unable to continue the upward trend in the pair with the US dollar, had continued consolidation below the current highs.
Fluctuations of exchange rate of the pair occur in the range between resistance in the area of 1.1450 and support of 1.1340. Published last week minutes of the last meeting of the Federal Committee on the US FRS open market was rather "soft", which is actualy was expected by the currency market participants, thus turned out to provide support for the euro/dollar. But the fall of the euro in tandem with the Japanese yen have a deterrent effect on the dynamics of the pair.
The Japanese yen again in great demand, against which the US dollar in tandem with it broke through the psychological level of 110.00, which led to a reduction of the pair below the 108th figure. From the support in the area of 107.65 its getting buy out, but the recovery attempts are continue to attract interest in the sale. To IAFT traders we recommend to pay attention to the fact that the prospects for the US dollar look pretty bleak, its fall may continue. However, the Yen is showing signs of overbought, which increases the risks of an upward rebound. The reason for the profit-taking on long positions in the yen may be the growth of expectations of the expansion of stimulus measures by the Bank of Japan.BlogLinks
Best regards, AffiLinks
International Association of Forex Traders
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