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The euro used growth potential

EUR / USD

Last Friday, the euro rose by 118 points against the backdrop of apparent optimism in the political sphere of Europe, where an agreement on migration policy was reached. This factor, as we noted earlier, in this case, is not some significant event in politics, only the old order of things has been preserved. On that day, the euro acted as the slave currency, growing after the British pound, which, in turn, had stronger reasons for growth - GDP growth for the first quarter was 0.2% against expectations of 0.1%. The core CPI of the euro area for June fell from 1.1% y / y to 1.0% y / y, the total CPI increased from 1.9% y / y to 2.0% y / y. In the US, personal income of consumers in May increased the expected 0.4%, expenses increased by 0.2% against the forecast of 0.4%. The index of business activity in the manufacturing sector of the Chicago region for the past month increased from 62.7 to 64.1, while waiting for a fall to 60.1. Consumer confidence declined slightly from 99.3 to 98.2. The stock market (S & P500) added 0.08%.

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Technically, the price still worked out the upper limit of the falling channel and is now preparing to decrease. While we see only the first sign of this decline - the price returned under the red balance sheet. The balance, thus, has shifted to a decline, but the price is to overcome the more important support for the blue Kruzenshtern trend line (1.1615) to continue the path to supporting the trend line with the target of 1.1510. We are also waiting for the transition of the signal line of the Marlin oscillator to the reduction zone.

Outgoing PMI Manufacturing PMI in the final estimate for June is expected without a change of 55.0 points. The unemployment rate for May is also projected without a change of 8.5%.

The material has been provided by InstaForex Company - www.instaforex.com