The European currency continues to be in demand among traders, as many are confident that the European Central Bank, headed by President Mario Draghi, will today make statements aimed at winding down the program for redemption of bonds and for its completion next year. Also, it is expected that the volume of redemption of bonds will be announced.
If such statements are made, in what context they might be, the euro can take new monthly and annual highs. The whole problem will be in the levels of 1.2000 and 1.2060, the breakthrough of which will lead to such areas as 1.2130 and 1.2170, and to the renewal of the psychological level of 1.2220.
If the ECB president does not touch upon the above-mentioned topic, but starts talking about the high euro exchange rate, which grew by more than 1600 points paired with the US dollar, this could lead to a significant pressure on risky assets and, accordingly, to the EUR/USD short-term collapse to the minimum area of 1.1790 and 1.1680. A larger downward correction wave will also be formed, which may last until the end of this year, which will return the trading instrument to support areas of 1.1560 and 1.1480.
In any case, one must understand that today's statements of the head of the ECB can determine the direction of the euro this year.
Dodge from the representatives of the Republican Party of the United States.
Yesterday, it became known that the problem with the limit of the national debt of the United States is most likely temporarily solved, since the US President Donald Trump agreed with raising the debt limit for a period of three months.
Let me remind you that the Treasury must get permission from Congress before September 25 to raise the debt of the federal government, otherwise the White House will have to default.
Quite a clever decision came up with the leaders of the Republicans. It consists in trying to drag through Congress a decree on raising the level of public debt, combining it with the help that will be allocated to overcome the consequences of Hurricane Harvey.
Let me remind you that the Congress is considering the allocation of the first $ 8 billion of the total package of assistance in 28 billion Texas. One of the speakers of the House of Representatives, Paul Ryan and his colleagues, suggested that the decree on increasing the state debt limit should be tied to allocating funds for the restoration of the states from a natural disaster.
This ties the hands of conservatives who oppose raising the limit of the national debt, but it is unlikely that someone will vote against providing assistance to Texas, and the combination of such a proposal will simply "tie the hands" to representatives of House Freedom Caucus.