Yesterday the market was multidirectional dynamics. The euro remained stable, but the pound was pretty expensive. In principle, the single European currency was generally cheaper, as the indices of business activity were lower than preliminary estimates. In particular, the composite index remained unchanged, not grown. The index of business activity in the service sector fell from 55.4 to 54.7. Of course, and so waited for its reduction, but only to 54.9. Only the index of business activity in the manufacturing sector grew from 56.6 to 57.4, which allowed the composite index to remain unchanged. Slower growth rates of retail sales, though not as much as expected, from 3.3% to 2.6%, and not to 2.5%. Apparently, the data is not the best, but the euro remained stable, as the market is waiting for tomorrow's ECB meeting on monetary policy and a press conference Mario Draghi. Also in the US, production orders fell by 3.3%, which neutralized the negative from European data and allowed the pound to strengthen.
Today, there is almost no news. Only later in the evening will the data be released on business activity indices in the US. In general, with the expected decline in the production index in the service sector, the data should grow substantially. This will allow the composite index to grow, allowing the dollar to strengthen somewhat, especially since it is oversold in relation to the pound. However, the euro, if it falls in price, is not strong enough, as the market is waiting for the results of tomorrow's ECB meeting.
The EUR / USD pair may fall slightly and move towards 1.1845, but it will not reach this mark.
Пара фунт/доллар будет снижаться до 1,2970.
