The single currency of the European Union region fluctuated in a narrow upward range during the Asian session to see its fourth session retreat since June 3 against the US dollar on the eve of economic developments and data expected on Friday by the Eurozone economies and the US economy. In the world.
At 05:07 GMT, the EURUSD rose 0.04% to 1.1297, compared with the opening at 1.1293, after reaching a high of 1.1309, while reaching a low of 1.1289.
The markets are currently looking for both the French and German economies and the economies of the region as a whole. The initial reading of the Markit Index for Industrial and Service Purchasing Managers for the current month, which may reflect the expansion of the service and industrial sector in France, the contraction of the service sector and contraction of the industrial sector in Germany, SOI shrinking industrial contraction in the economies of the region as a whole.
Other than that, we have followed Wednesday, President of the Commission, John Claude Juncker at the ECB forum on central banks in Sintra, that the attack on the independence of the European Central is not fair at all, hours after the European Central Bank Governor at the same conference Tuesday The past that the ECB does not target specific levels of the euro exchange rate.
He added that inflationary pressures are still weak and that they are moving at a slow pace, adding that the ECB will take more monetary stimulus steps unless growth and inflation in the euro area improve, In the wake of his discussion that the rate cut will remain one of the tools put forward and confirmed the willingness of the European Central Bank to expand the stimulus.
"President Mario Draghi has just announced that further stimulus may come, which has led to the euro immediately falling against the dollar, making it unfairly easy for them to compete," President Donald Trump said Tuesday. Against the United States of America, they have been running away from this for years, along with China and others. "
Otherwise, investors are currently looking for the US economy to reveal the preliminary reading of the PMI industrial and service index market for the United States, the largest industrial world, amid expectations for the stability of the expansion of the industrial sector at 50.5 unchanged from the previous reading earlier this month, compared to 50.6 in May In May, and the service sector expanded to 51.0 compared to the initial reading at 50.9 versus 53.0 in May.
This comes ahead of the release of housing market data with the Existing Home Sales Index reading, which could reflect a 1.2% rise to 5.29 million homes versus a 0.4% drop at 5.19 million homes last April, Fed Governor Lyle Prinard at the opening of the monetary policy summit of the Federal Reserve Bank of Cloveland in Cincinnati.
The Fed's monetary policy makers agreed last Wednesday to stay benchmark rates between 2.25% and 2.50% for the fourth consecutive meeting at the Federal Open Market Committee meeting on June 18-19 in Washington, During which the Federal Commission's expectations of growth rates, inflation and unemployment as well as future interest rates for the next three years.
On Wednesday, the Federal Reserve dropped the word "patient" from its statement and added, "We will act as necessary" to maintain the economy, which reflects the opening for a possible reduction in federal interest rates later. Eight members see a reduction this year, knowing that the average forecast did not reflect any reduction this year, but next year 2020.
Federal Reserve Governor Jerome Powell said at a press conference after the meeting in Washington on Wednesday that some monetary policy makers in the Fed believe that the issue of soft monetary policy has been strengthened, stressing that the Committee will continue to monitor developments and economic data closely during the coming period To determine the future of monetary policy depending on those developments and data.
Technical Analysis
EURUSD fluctuates around 1.1300, and after confirming the breach of 1.1265, the road is open for further upside in the coming sessions, supported by the positive sign from Stochastic, pending a visit to 1.1443 mainly.
SMA 50 supports the suggested bullish wave, which requires stability to remain above 1.1265 and above 1.1180.
The trading range for today is expected among the 1.1250 support and 1.1400 resistance.
The general trend for today is bullish.