The EUR/USD is on a downward slope
12.06.2014
This week the main currency pair is trading downward, the "Bears" are not leaving any intentions to test the yearly low.
On Thursday the EUR/USD remains under strong selling pressure. It would seem that the main currency pair has a reason for a rebound, but the ECB once again throws in a driver for sale.
The European Central Bank 7 days after the June meeting, published a monthly release, which noted that the ECB will take action in case of continued low inflation in the euro zone. This decision was taken unanimously and the members of the ECB are ready to use the package of "unconventional measures."
With all that the European Central Bank said that there aren’t many actual reasons for the deflation. But the package of mitigation measures is still being developed - just in case.
The document has a very noticeable phrase that if paraphrased sounds like this: "the ECB believe that in the medium term upside and downside risks to price movements are limited." Interpret this as follows: Yes, the ECB understands that the moment for effective stimulation was missed and now it will be very difficult to remove deflationary signs in the economy. However, the regulator will monitor the situation and have several trump cards "up its sleeve" in case of complications. With that, for now the ECB does not expect a sharp improvement in consumer inflation. In addition, the unemployment rate in the euro area is still too high.
At the moment the "bear" goal in the EUR/USD is 1.35, later the sales will go to yearly lows at 1.3477.
RoboForex Analytical Department
On Thursday the EUR/USD remains under strong selling pressure. It would seem that the main currency pair has a reason for a rebound, but the ECB once again throws in a driver for sale.
The European Central Bank 7 days after the June meeting, published a monthly release, which noted that the ECB will take action in case of continued low inflation in the euro zone. This decision was taken unanimously and the members of the ECB are ready to use the package of "unconventional measures."
With all that the European Central Bank said that there aren’t many actual reasons for the deflation. But the package of mitigation measures is still being developed - just in case.
The document has a very noticeable phrase that if paraphrased sounds like this: "the ECB believe that in the medium term upside and downside risks to price movements are limited." Interpret this as follows: Yes, the ECB understands that the moment for effective stimulation was missed and now it will be very difficult to remove deflationary signs in the economy. However, the regulator will monitor the situation and have several trump cards "up its sleeve" in case of complications. With that, for now the ECB does not expect a sharp improvement in consumer inflation. In addition, the unemployment rate in the euro area is still too high.
At the moment the "bear" goal in the EUR/USD is 1.35, later the sales will go to yearly lows at 1.3477.
RoboForex Analytical Department
Attention!
Forecasts presented in this section only reflect the author’s private opinion and should not be considered as guidance for trading. RoboForex bears no responsibility for trading results based on trading recommendations described in these analytical reviews.