The European single currency went red territory after inflation data in Germany of expectations. During the day will be published further data for the biggest economy in the eurozone, while all positive movements of EUR / USD pair to fend off the strong US currency, writes WBP Online.
The euro was trading at 1.0993 dollars at 10:37.
The focus of trade is expected about the German economy, this inflation is already available. Consumer prices in the largest economy in the euro area into deflation of 0.1% compared to the previous month. On an annual basis was recorded inflation of 0.3%.
The euro broke through the level of 1.10 dollars after the previous session of choppy trade. The single currency fell 0.22 percent immediately after the publication of inflation data in Germany.
Today will be published ZEW index for the expected economic development in Germany. Expectations are that he retreated to 30.5 points in July, lower than the 31.5 points recorded in June. The indicator is obtained by questionnaire method and measures the difference between the share of optimistic and pessimistic analysts.
Meanwhile, the index of the ZEW current situation in the German economy is expected to drop to 60.5 points. Compared to last month the meter reads 62.9 points.
All sharper reverse movements of EUR / USD pair found resistance to strong dollar. Greece finally reached an initial agreement with the Eurogroup and “the market recognizes that this will be taken into account by the Fed. The market calculates tightening of monetary policy only eight basis points in September and attitudes are that the dollar is undervalued and is likely to rise in the future, “said Chris Western from IG.
The chairman of the US Federal Reserve (Fed) Janet Yellen remains of the opinion that 2015 is the right time to raise interest rates. The report of the Fed’s future monetary policy, which is exported to Congress twice a year and will be taken this week, looking forward from investors bet on long positions in the US currency.
After the EUR / USD pair started the week with a negative gap, which exceeds 5% on Monday, the single currency was able to gradually erase losses early session trading on Asian markets.
Once implemented two peaks near resistance levels of 1.12 dollars, the euro dropped to 1.0977. Break below the key level of 1.11, and then under the round $ 1.10 opened the door to lower prices.