Demand for Risky Assets Absent
The absence of important fundamental data and the upcoming speech by Fed Chairman Janet Yellen, which will take place tomorrow, seems to force traders to take a wait-and-see attitude towards risky assets.
Data that were released in the morning were ignored by the market, as they were mostly of informational nature.
These data were provided against a backdrop of problems in the Senate related to the issue of healthcare and tax reforms.
The sub-index of expectations regarding the improvement of the country's economic prospects decreased by 6 points, while the index of inventories and the indicator of intentions for increasing inventories increased by 3 points.
According to Redbook, retail sales in the U.S. for the week from July 2 to 8 increased by 2.4% compared to the same period in 2016. In general, during the first week of July, retail sales in the U.S. fell by 1.1% compared to the previous index and rose by 2.4% compared to the previous year.
These data were also not particularly taken into account by the market.
Technical picture in the EURUSD pair remains at the same level. The inability to go beyond the level of 1.1410 puts into question the continued upward movement of the trading instrument.Only a break of this level will lead to the development of a bullish scenario with the update of monthly highs of 1.1440 and 1.470. The breakthrough of the morning region of 1.1380 will lead to the removal of a number of stop orders and a decline in the trading instrument which is already in the support range of 1.1330.
The British pound was under pressure after a speech by Deputy Governor of the Bank of England Ben Broadbent, who said that the UK and the European Union economy would suffer significantly if trade between them was reduced as a result of Brexit. Broadbent focused his attention in the employment sector and the income of the population, which will be most vulnerable to the complication of trade relations.
Broadbent also said that the conditions limiting trade flows will affect economic activity, which in the end will lead to a slowdown in economic growth.
