Friday, October 3, 2014

Euro makes a long-awaited rebound – Finam.RU

Euro makes a long-awaited rebound – Finam.RU

On Friday, October 3, the single European currency against the dollar in morning trading moderately retreat after a day earlier taken the strongest jump since March.

Euro at auction on Thursday in line with our expectations managed to continue corrective bounce influenced the outcome of the meeting of the European Central Bank. The EUR / USD bottoms out almost 2-year low due to the fact that the ECB President Mario Draghi gave no details of the plan for the acquisition of debt securities. Central bank policy rates were kept at the same levels, as expected the vast majority of the world markets.

Draghi said during his press conference that the ECB’s balance sheet – just a “tool”, and the only thing required to achieve monetary authorities, so it is the return of inflation in close proximity to the level of 2%. Apparently, such comments Draghi downplayed the significance of the upcoming expansion of the ECB balance sheet. Anyway, the players pay attention to the lack of specificity in the statements of the head of the ECB on the planned program of acquisition of debt securities.

As for macroeconomic statistics published yesterday in the United States manufacturing orders for August fell to 10.1% after the jump by 10.5% the previous month, while the market on average expected a decline of 9.5%. Note that in July there was an abnormal jump aircraft orders Boeing, so the August drop demands for such a value did not surprise anyone.

Today in the euro area published data on retail sales for August, but in the United States will block data the labor market, which traditionally takes the spotlight focused investors. It is expected that employment in non-agricultural sectors of the United States in the last month increased by 215,000 after a gain only 142,000 a month earlier. Also the ocean, there are data on business activity in the services sector.

From a technical point of view, the EUR / USD pair forms a very natural and overdue corrective rebound after breaking through “falling wedge” and may well reach $ 1.2705 within a trading day.
 
  Source: MetaTrader Finam Ltd, 4-Hour Chart
 

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