By Wednesday, the main currency pair is ready to update the April highs in anticipation of the American news.
The Eurocurrency very skilfully uses any pretext to recover positions. By mid-day trading on Wednesday, EUR/USD has broken 1.10 and is holding above. Ahead is the update of April highs, if we are lucky. One gets the feeling that traders are building up the main currency pair, to then successfully start selling it.
Yesterday statistics were released according to which April's index of US consumer confidence from the Conference Board fell to 95.2 points against the value of 101.4 points in March. The forecast assumed that the figure will rise to 102.6 points. In the components of the report it is clear that the expectations index fell to 87.5 points in April compared to 96 points in March. The evaluation of the index of current conditions has also deteriorated.
Today is an important day for the US dollar. First, EIA publishes statistics on oil and petroleum products for the week, and later on the preliminary data on GDP in the first quarter came out. Expectations suggest that the US economy expanded in January-March, by only 1% q/q with growth in the IV quarter of 2014 by 2.2%.
With everything else tonight closes the US Federal Reserve meeting. No matter what the monetary politicians say, it will be immediately priced into the euro/dollar. In general, the evening will not be weary.
RoboForex Analytical Department