EUR / USD – risk appetite supports European currency

The single European currency is holding position quite confidently as the bulls managed to stop the price decline, and moved to restrained growth. All this is happening amid growing political crisis in Germany. Yesterday there was no special news on the topic from the leading EU economy, but the situation remains uncertain, and even Merkel herself, according to some media reports, spoke in favor of holding new elections. For a while the situation is hanging in the air, and everyone is waiting for the final solution of this issue. Yesterday, statistics on sales in the secondary housing market were published, which showed an increase of 2.0%, 5.48M against 5.42M and 5.37M according to the forecast and the previous month, respectively.

The data could not drag the EUR / USD down further, and in the end, we saw a price increase. There are two factors that can explain this reaction of the market. First, the market is waiting for the publication of the FOMC protocols today and as a consequence a certain caution. The second - holidays in the States. Market participants do not want to open new positions, but rather prefer to fix open positions. In general, the situation on the market is developing quite interesting and contradictory. We are looking forward to the publication of the statistical data and the FOMC protocols in the USA and follow the news from Germany.

Recommendations: out the market

Fort Financial Services