Euro: The time to fall has arrived

30.07.2015
The main currency pair is dropping for a third straight day - the preponderance of forces is on the side of the greenbacks.

The sympathies of investors turn towards the US dollar, and not only because the Federal Reserve in the last session was left in general, satisfied with the state of the US economy. China's stock market remains under sales, and although the current rate of movement can not be compared to previous sessions, the fact remains. China needs to by all means stabilize the economic indicators because the risk for the markets is colossal.

Yesterday the Fed said that it would like to see even better results on the employment market. In addition, we would like to count on a steady increase in inflation - of course, to the target level of 2%. Now the US CPI is far from this goal. All this combined does not exclude the likelihood that at the September meeting the Federal Reserve still decides to raise the interest rate. It supports the US Dollar.

Today in the afternoon, we will see the publication of US GDP for the second quarter. A very important report, considering how much the data was reviewed in the beginning of the year. The average market forecast assumes that the US economy expanded in April-June by 2.6%.

This release is able to trigger a wave of volatility in the euro/dollar, if the statistics would be far from expectations. My forecast assumes GDP growth of 1.7%. Let's see what the reality will be.
 
RoboForex Analytical Department

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