This week’s last day EUR/USD perform narrow trades between 1.5040-1.5068 as a reaction to yesterday's announcement of the head of the European Central Bank Jean Claude Trishe that the Bank will not raise interest rate and the latter will remain 1 per cent for some time.
Trishe was expected to make vociferous claims which yesterday led to growing demand for risky assets and gold. Market players assumed that the head of ECB will announce stimulative monetary policy is about to come to an end and that economic growth will be sharp and substantial. Meanwhile, Trishe declared that the economy shows a positive trend and has stressed that economic rebound will take a turn for the best in 4th quarter, having underlined, that the economy still depends on temporary measures.
The policymaker seemed to be very accurate and prudent when making his statements, especially concerning the plans to call back stimulus program, hence euro did not perform any sharp changes.
Today, on Friday Forex investors’ attention drawn to factor orders indicator in the USA for October, and also to US labour market.
In case labour market data is not encouraging enough and the number of cut-offs reaches more than-190 thousand, the key support level of EUR/USD valued at 1.4820-1.4825 would not be able to sustain the pressure, and the new path to 1.4630 will begin, though the trend would be short-term. Moreover, if correction actions are too tight, the trend may turn to 1.4360.
Meanwhile, analysts still believe euro has something in store. Experts forecast ascending trend on Forex market for European currency, as euro still has way to go and that way may be amounted at 1.5285 – 15-month’s maximum – during the forthcoming sex months in case all the economic basis for the trend remain the same: high oil prices and new gold price tops.