FX.co ★ Trading plan for August 31, 2017

Today we are waiting for an extremely busy day. First, all the attention is focused on European data, where unemployment and inflation are published. According to forecasts, the unemployment rate should remain unchanged, so this will not significantly affect the rate of the single European currency. Inflation, although it will be preliminary, its value is extremely high. It is expected that it will accelerate from 1.3% to 1.4%. In the face of increasing expectations of the beginning of a gradual tightening of monetary policy, the increase in inflation will give strength to the single European currency.

In the US, there are data on personal incomes and expenditures, which may grow by 0.3% and 0.4%, respectively. The growth of consumer activity presages the resumption of inflation, so if the forecasts are justified, the growth of the single European currency may stop. Along with this, the number of initial applications for unemployment benefits is projected to increase from 234 thousand to 237 thousand, and the reduction in the number of repeated applications from 1,954 thousand to 1950 thousand. Thus, the forecasts for US statistics are quite optimistic, but they are not enough to outweigh the importance of inflation in Europe.

The euro/dollar currency pair, forming a correction, reached the support level of 1.1880, where the movement slowed down for times. Probably assume a temporary slowdown within 1.1865 / 1.1915, where the "bulls" will try to regroup and return to the market, returning us to the values of 1.1945 / 1.1980.

The pound/dollar currency pair will rather go down, ignoring the European statistics, and the benchmark is 1.2865.