The dollar strengthening stalled at the trading on Wednesday. Another side correction was formed and turned into a slight dollar decrease against European majors. However, early in the day the dollar still managed to test new high. Obviously, the interest decline to the dollar was based on the strong support as well as the UK economic and political news.
The dollar retained a clear advantage in relations with the yen and closed the session with a plus. There were only few news from the U.S., in fact, the attention was attracted by the National Federation of Independent Business report pointed that the August small business owners optimism rose to 96.1 against 95.7 in July, while the forecasts were reduced to a growth to the level of 96.0 which had no effect on the market sentiment.
The United States news set wasn’t rich in the important indicators content - the July wholesale trade inventories data will be published, as the forecasts suggest an increase by 0.5% m/m, after +0.3% m/m. However, the expectations in terms of the most July wholesale trade talking about the activity reducing to 0.2% m/m vs. +0.6% m/m previously which will reduce the growth stocks information gains if they are confirmed by the fact as it indicates to the residual increase due to the reduced demand.
If we talk about the prospects, the correction may well be continued under the technical factors influence and a poor news flow in almost all regions. The only exception is the Britain where we expect for the important political events and therefore it could increase the dollar/pound volatility.