Weak fundamental data on the US economy, along with statements by representatives of the Fed that it is necessary to refrain from raising interest rates in the US, put pressure on the US dollar, which again returned to weekly highs paired with the European currency, and also yielded a number of positions to the British pound.
Yesterday, it became known that the conditions for doing business in New York in August this year deteriorated. According to the Institute of Supply Management of New York, the index of current conditions for doing business in August was 56.6 points against 62.8 points in July.
Despite the growth of employment trends in the US, apparently, the Fed does not have enough good indicators of the labor market. According to the report, the index of employment trends in the US in August 2017 rose to 134.62 points against 133.60 points in July. In comparison with the same period of the previous year, the index grew by 5.6%.
Yesterday, Fed spokesman Neil Kashkari made a statement, pointing out that raising the Fed's rates could bring real harm to the US economy and given the current weakness of inflation, one should refrain from raising rates in the near future. Kashkari also said that the reason for weak inflation may be the recent premature rates of interest in the United States.
The European currency is supported by the expectations of economists, who agree that the European Central Bank is preparing for one of the most important moments in recent years. It is about the curtailment of the program of buying bonds, which should at least not undermine the recovery of the euro-zone economy.
Many traders and investors expect that at its meeting, which will be held tomorrow, the European Central Bank will give clearer explanations on this matter and will state about specific dates for the start of the curtailment of the bond repurchase program.
As for the technical picture of the EUR/USD pair, no significant changes occurred. Until a breakthrough is made above the 1.1925-1.1930 range, it will be timely to talk about further prospects for the euro's growth. It is likely that a number of speculative players will try to "raise up" the euro's rate in connection with the larger market participants, which may lead to the renewal of levels 1.1980 and 1.2020 today. However, it is possible to speak about more directed trend movement on the euro only after tomorrow's decision of the European Central Bank, which can both support risky assets and collapse them.