Since Thursday morning the main currency pair continues to grow despite an endless stream of statistics and reports - the "bulls" are on a course to 1.39 and beyond.
The euro / dollar continues to confidently rise: the flow of statistics the flooded the market the day before, seemed even excessive for the investors. On the one hand, a preliminary report on the U.S. GDP for the first quarter hit the positions of the dollar hard - the economy grew by only 0.1% y/y vs. strengthening by 1.1% y/y. This is perhaps the weakest factual growth over the past few years. The government claims that the blame for such decline was the excessively cold winter this year. If so, then the GDP will recover in the second quarter and be able to meet the annual targets.
The U.S. Federal Reserve is quite confident in the strength of the economic system: according to Janet Yellen, the Fed chairman, the economy is now in a growth phase after the winter stagnation. The labour market remains weaker than we would like to see, and the program of stimulation of QE3 continued to decline with the planned volumes of $ 10 billion monthly. At the moment the volume is $ 45 billion a month.
The European inflation in April, according to preliminary calculations, strengthened slightly, reaching 0.7% y/y vs. the previous number of 0.5% y/y. The index still fell short of expectations, but signs of deflation have decreased.
Now the focus of the market will gradually shift towards the reporting on the U.S. labour market. It is already known that the data released from the ADP proved positive, tomorrow will see the data on unemployment as well as employment outside of the agricultural sector.
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