The absence of important fundamental statistics has led to a balance in the market. If in the first half of the day on Monday, the euro showed a slight strengthening in tandem with the US dollar, then in the North American session, there was a decrease in EURUSD.
Meanwhile, all attention is focused on the situation related to the imposition of a state of emergency in the United States by American President Donald Trump. This decision was taken to secure funding for the wall on the southern border of the country, which was not approved by the Democrats.
Yesterday, a representative of the US Democratic Party signaled that he was preparing to protest this decision, which would make it difficult for Trump to fulfill one of the key electoral promises. California Attorney General Xavier Becerra said he plans to bring the administration to court with other states to impose a state of emergency on Friday.
His promises were not long in coming. Already today, it became known that 16 states, including California and New York, filed a lawsuit against the Trump administration for declaring a state of emergency.
A lawsuit was filed with the District Court of Northern California. It demands that the president stop spending funds on the construction of the border wall without the permission of Congress, which is a clear disregard of the US president, the constitutional separation of powers.
It is important to note that not only the President of the United States but also the Secretary of Defense, the Secretary of the Treasury and the Secretary of Homeland Security were brought in as the respondent.
The development of the current situation may adversely affect the quotations of the US dollar, which will allow risky assets to continue their upward correction.
As for the technical picture of the EURUSD pair, trade is maintained in a wide side channel. Support levels are seen in the area of 1.1260 and 1.1235, while buyers today are again required to cope with resistance in the area of 1.1330. Only a breakthrough in this range will strengthen the demand for the euro, which will resume an upward momentum with a test of new highs in the region of 1.1360 and 1.1400.
The Australian dollar fell against the US dollar after the publication of the Reserve Bank of Australia of its plans and economic forecasts.
The RBA said that it would now be more correct to keep the key rate unchanged in order to maintain stability and confidence, which will lead to further progress in reducing unemployment and rising inflation. The reasons for changing interest rates in the short term are not serious enough.
The RBA continues to refer to the changing situation in the global economy and uncertainty. However, the main changes in the forecasts are associated with a slowdown in retail sales, lower housing prices and a slowdown in consumption.
The material has been provided by InstaForex Company - www.instaforex.com