EUR/USD (a 4-hour chart)
Fed thinks about the future of QE3. It is still too early to reduce the ongoing Federal Reserve program that stimulates the economy of the country. This position was voiced by John Williams. Speaking at a meeting of the Council for Economic Development of Sonoma County, Dzh.Uilyams noted that we cannot to speak about this program cutting as it redeems $85 billion of bonds monthly.
We expect meeting of the European Central Bank (ECB) on monetary policy on Thursday. We believe that the central bank will leave the key interest rates unchanged at 0.5%.
Meanwhile, the euro zone economic data is expected to support the continuation of recent trends: the production recovers from the minimums reached earlier this year and unemployment rates continue their steady growth.
It is predicted that the composite Purchasing Managers Index PMI will remain unchanged compared to the prior value, and the details of data again point to the growth of new orders. However, the optimism of companies in Germany is likely to remain subdued.