Currency pair euro/dollar continues a rebounding

At the morning trading, On Wednesday, August 7, the European currency is being traded-in positive territory, trying to win back the losses of the previous day.
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On Tuesday, the EUR / USD currency pair formed a downward movement during the trading session. In the first half of the day, a local minimum was set at 1.1167, and then the "Eurobbulls" managed to win back most of the losses.
In accordance with critical macroeconomic statistics in Germany, industrial orders were published, which rose by 2.5% in June, while analysts had expected an increasing by 0.5%. At the same time, the May value was revised upward from -2.2% to -2%. No essential macroeconomic statistics have been published in the United States.
The representative of the Fed, James Bullard made a statement Yesterday that for now, he did not see the conditions in order to reduce the interest rate by 0.5% at a time. He believes inflationary pressures continue declining, while the labor market remains stable. At the same time, he suggests that a trade war could slow down US GDP growth. He also expects that there will be another reduction in interest rates, by the end of this year.
Yesterday the White House trade adviser Peter Navarro urged the Fed to lower the rate by 0.75%, or even by 1%, by the end of the year. So that there would not be such a large gap between the monetary policies of other world Central Banks.
Currently, market participants should follow the statistics on industrial production in Germany. According to analysts expectations, in June, the indicator decreased by 0.4%. In France, the trade balance for June will be published. In the United States, important macroeconomic statistics will not be released again. Nevertheless, the speech of the head of the Federal Reserve Bank of Chicago Charles Evans will take place.
The EUR / USD currency pair tested the upper limit of the descending channel at 1.1165, and then resumed the upward movement. The closest resistance level is now at 1.1279. Stochastic lines are in a favorable position for buying and are far from the overbought zone, so the potential is still preserved.
You can find corresponding information on GMOTrading.com.
The information above cannot be considered as investment advice and past results do not indicate future performance.
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