The European currency managed to strengthen its positions against the US dollar and the British pound, which led to the formation of a small upward correction. The absence of important fundamental statistics on the American economy forces traders to refrain from new long positions in the US dollar after the large growth that has been observed over the past three weeks.
From the data released yesterday afternoon, we can only note the increase in tax revenues to the U.S. government. This happened due to an increase in income tax for individuals.
According to the report of the US Treasury, US government revenues increased by 12% in April 2018, to 55 billion US dollars compared to the same period last year.
The positive balance of the budget in April was $ 214.3 billion, but this is not enough, even to cover the current budget deficit, which from October 2017 to April 2018 amounted to $ 385.4 billion. There was an increase of 12% compared with the same period last year.
As for the technical picture of the EURUSD, the buyers of the European currency coped with the task set for this week and managed to return to the resistance level 1.1890, which is now forming. While the trading of risk assets is above this range, one can expect to maintain an upward correction potential at 1.1980 and 1.2020. 1.1980, the pressure on the euro may again increase significantly at the beginning of the next week, which will lead to new monthly lows of 1.1760 and 1.1700.
Yesterday, the Australian dollar also managed to regain a number of positions against the US dollar. A good news for the Reserve Bank of Australia was the report on the number of approved housing loans.
According to the Australian Bureau of Statistics, the number of approved housing loans in Australia fell by 2.2% in March this year compared with February. This happened because of the reduction in the issuance of loans to investors. Economists had expected a drop in the number of loans by 1.8% compared to the previous month.
It should be recalled that the housing market in Australia is under the scrutiny of the regulator, as in the rapid price increase of the Australian households.
In total, the volume of approved housing loans related to investment fell by 9.0% compared to February.
The material has been provided by InstaForex Company - www.instaforex.com