During the Fed’s meeting it was decided not to change current monetary policy. However, according to Ben Bernanke’s commentaries it will take place either at the July or September’s meeting. Fed’s Economic Projections surpassed investors’ expectations, that was accepted as a sign that it will be done “sooner, not later”. It is forecast GDP grows 2.3%-2.6% vs. 2.3%-2.8% in 2013 in the previous March’s forecast and 3.0%-3.5% in 2014 vs. 2.9%-3.4% in March. Forecast on unemployment rate in 2013 slashed to 7.2%-7.3% vs. 7.3%-7.5% in March’s forecast. At the conference Bernanke said that the Fed’s target is not the rate of unemployment 7.0% or 5.5%, but a complete employment.
Yesterday German Finance Minister Wolfgang Schaeuble announced that economic situation in the eurozone is still unstable and Spanish banks are of great concern. In this regard the eurozone’s position compared to the US is weaker and they expect further decline of the euro. Technically, the target levels are the following that was noted earlier: 1.3230, the low of June 11 and the range 1.3177/92, the low of June 10 – the high of May 8, which coincides with trend line on the H4.
However, probably today the rate of downward movement will slow down and eve some sort of consolidation may be expected if data on PMI in Germany and in the eurozone in June is better than expected. Manufacturing PMI in Germany is expected to be 49.9 vs. 49.4 in May, Services PMI is forecast to be 50.1 vs. 49.4. In the eurozone Manufacturing PMI is expected to be 48.6 vs. 48.3, Services PMI 47.7 vs. 47.2 in May.
On the whole data on the US is expected to be positive. However, due to the Fed touched upon the problems with unemployment, Initial Jobless Claims published at 16:30 GMT+4 look to be relevant. It is estimated to be 343K vs. 334K in the previous week. At 17:00 GMT+4 data on US Flash Manufacturing PMI in June, forecast 52.5 vs. 52.3 in May. At 18:00 GMT+4 US Existing Home Sales in May, expected 5.01 million vs. 4.97 million in April.
Thus, we expect further decline of the euro, howeve, the rate of its decline and consolidation depends on published today data.
The material has been provided by InstaForex Company – www.instaforex.com
During the Fed’s meeting it was decided not to change current monetary policy. However, according to Ben Bernanke’s commentaries it will take place either at the July or September’s meeting. Fed’s Economic Projections surpassed investors’ expectations, that was accepted as a sign that it will be done “sooner, not later”. It is forecast GDP grows 2.3%-2.6% vs. 2.3%-2.8% in 2013 in the previous March’s forecast and 3.0%-3.5% in 2014 vs. 2.9%-3.4% in March. Forecast on unemployment rate in 2013 slashed to 7.2%-7.3% vs. 7.3%-7.5% in March’s forecast. At the conference Bernanke said that the Fed’s target is not the rate of unemployment 7.0% or 5.5%, but a complete employment.
Yesterday German Finance Minister Wolfgang Schaeuble announced that economic situation in the eurozone is still unstable and Spanish banks are of great concern. In this regard the eurozone’s position compared to the US is weaker and they expect further decline of the euro.
Technically, the target levels are the following that was noted earlier: 1.3230, the low of June 11 and the range 1.3177/92, the low of June 10 – the high of May 8, which coincides with trend line on the H4.
However, probably today the rate of downward movement will slow down and eve some sort of consolidation may be expected if data on PMI in Germany and in the eurozone in June is better than expected. Manufacturing PMI in Germany is expected to be 49.9 vs. 49.4 in May, Services PMI is forecast to be 50.1 vs. 49.4. In the eurozone Manufacturing PMI is expected to be 48.6 vs. 48.3, Services PMI 47.7 vs. 47.2 in May.
On the whole data on the US is expected to be positive. However, due to the Fed touched upon the problems with unemployment, Initial Jobless Claims published at 16:30 GMT+4 look to be relevant. It is estimated to be 343K vs. 334K in the previous week. At 17:00 GMT+4 data on US Flash Manufacturing PMI in June, forecast 52.5 vs. 52.3 in May. At 18:00 GMT+4 US Existing Home Sales in May, expected 5.01 million vs. 4.97 million in April.
Thus, we expect further decline of the euro, howeve, the rate of its decline and consolidation depends on published today data.
The material has been provided by InstaForex Company – www.instaforex.com
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