13, September 2017

US inflation data is in the market spotlight, EUR / USD consolidates

Today, markets are waiting for the release of updated information on US inflation, which could affect the decision of the Federal Reserve System for monetary policy at the end of this month. Analysts expect inflation to rise by 0.3% in August at the wholesale level, recalling that last month the value of inflation fell by 0.1%.

The meeting of the Federal Reserve is scheduled for September 19-20 to consider the economic and financial conditions and determine the appropriate position of monetary policy.

As expected, inflation data may suggest a new direction for the entire market in general and for the USD dollar.

The oil market will analyze the data on oil inventories. It is expected that oil reserves in the US rose during the second consecutive week. Analysts predict that crude oil inventories for the week ending Sept. 8 rose by about 3.2 million barrels.

Crude oil prices positively reacted to OPEC statement that said its output fell in August and forecasts higher demand in 2018, which will increase investors' expectations that in the second half of the year, the deficit of demand and supply for oil will decline.

In the FOREX currency market, today trading is taking place in narrow ranges against amid expectations of the basic data of the week, data on US inflation. Yesterday's trading on the euro / dollar currency pair was also restrained. The pair dropped to the area of ​​1.1930-1.1890, from where it moved to gain and completed the day at 1.1965.

Thus, a bullish candle with a long lower shadow appeared on the chart. Proceeding from this, we can assume that the corrective pullback is completed and the pair is ready to resume reinforcement.

Today's EUR/USD trading started with a positive dynamic, the price rose to 1.1992, but slightly corrected from this level. Today there will still be attempts to approach the important level of 1.2000 and to go hier.

If the market fail to settle above 1.2000, we'll see a reversal and the decline to yesterday's lows of 1.1925, whose update will send the pair lower to 1.1910, 1.1900 and 1.1880. Dropping below 1.1900, will create the prerequisites for a deeper decline in the area of ​​1.1820.