Monday 13 June 2016

Euro/dollar consolidated at the level of 1.13

The eurobulls made their first attempt to go on plus, but it failed. After falling to the level of 1.1289 euro/dollar has updated the session low. Now, the European currency is making a second attempt to win back the daily losses and get out in the positive region. On Friday the euro against the dollar closed at 1.1250.
There aren't especially fresh reasons to sell the pair, as well as to stabilize, but the dollar is feeling quite confident. Next week will be at least tense. Good statistical data from the labor market last week supported the US currency. Statistics on Thursday showed that the number of claims for unemployment benefits for the week decreased to 264 thousand. The forecast was for 270 thousand. Optimists in the dollar cheered. Step by step, the the market interest to the US currency is returning, which is logical in the run-up to the June meeting of the US Federal Reserve.
Now investors preferences are confused about each other. Based on market futures on Fed's decision on interest rates, 2-3% expect its growth on 15 June. Another 23-24% believe that it is more logical to increase the rate in July, to have time to gather all the necessary confirmation in the form of statistics and other data. In general, the latter hypothesis looks reasonable, especially since the labor market gives good signals.


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