FX.co ★ Upward Potential of the Euro is Limited

The US dollar regained some of its positions paired with the European currency, after a huge decline yesterday which is higher than 100 points.

This means that the Republicans suffered a second regression concerning the repeal of the law on accessible medical care.

The failure of the reform - another party is not in favor of the administration of Donald Trump.

Many leading economists and experts expect that in December this year, the European Central Bank will announce an early reduction of the bond-buying program which further supports the European currency.

Given the fact that during the recent speech by Fed Chairman Janet Yellen who cautiously spoke about the interest rate hike and inflation data had turned out to be worse than economists' forecasts.

According to the short-term technical picture of the EURUSD pair, the downward correction which was formed yesterday to close the North American session, would likely resume today.

The upward potential of the euro gradually subsides, hence, the first sales can be seen upon an attempt to restore the trading instrument from yesterday's high in the area of 1.1580.

During the second half of the day, the housing market data in the US is expected to provide some support to the US dollar.

The Australian dollar yesterday had strengthened against the US dollar, after the slightly revised comments of the RBA today. Despite expectations of tighter monetary policy by the Central Bank, experts predicted a revision of the economic growth forecast in the second quarter of this year due to the strengthening of the Australian dollar which will hinder the increase in the export component.