FOREX currency market was trading modestly at the first sessions of the current week, the sideway consolidation continued on Tuesday. It is expected that today trading activity will increase, and the period of medium-term sideway consolidation will end on the background of Powell's comments and the decision on the rate. In general, we expect growth in volatility in the second half of the trading session today.
Yesterday, European currency was once again under pressure on the background of statistics and technical factors. Weak data on the ZEW economic sentiment index disappointed the markets. It was expected that the figure for Germany would decrease from the previous 17.8 to 13.1 points, and in the EU from 29.3 to 28.1 points, but the index fell to 5.1 and 13.4 points, respectively. The figures came out very weak, taking into account the expansion phase of the European economy. This indicator is quite important, and weak figures indicate that there are certain negative expectations for the German economy and for the EU as a whole. Probably, such assessments were formed on the background of current risks for the global economy development, and the danger of protectionism and trade wars.
Technically, EUR/USD declined from $ 1.2340 to $ 1.2238. The decline is not too strong, as today the pair has turned to growth, approaching the round to 1.23 (1.2285) Trading activity in European trades is minimal, the technical picture has not changed, we are waiting for the decision on the rate and comments of the chief financial officer of the United States.
Trading recommendations - remain out of the market before the news, analyze the market reaction