On Monday, the single European currency paired with the US dollar traded in a quite restrained manner amid the low volume due to US holiday. A small increase in the risk assets today during the Asian session occurred after the statements made by the representatives of the European Central Bank.
In particular, Sabine Lautenschlaeger, member of the Governing Council of the Central Bank, said that the European Central Bank should start reducing bond purchases earlier next year. In her opinion, even if the regulator decides to reduce the volume of bond purchases, some mitigation measures will remain.
S. Lautenschlaeger expects some growth in inflation, as the recovery of the eurozone economy cannot pass without a trace. However, she believes that a soft policy should be maintained in order to bring inflation back towards the target level about 2.00%. When talking about interest rates, it remains on its record lows.
Take note that the ECB is currently buying bonds worth 60 billion euros per month as part of its quantitative easing program. Many experts are certain that during the meeting scheduled on October 26, this program will be revised.
As for the technical picture of the EUR / USD pair, only a breakthrough in the intermediate resistance range at 1.1780 will lead to an increase in long positions by major players and renewed levels such as 1.1820 and 1.1900. Failure attempt to hold on to 1.1780 could lead to a renewed pressure on the euro and a decline on its monthly lows near the 1.1670 area.
The positive current account balance of Japan in August 2017 had increased which amounted to 2.38 trillion Japanese yen. This happened due to positive indicators of the service sector. Haruhiko Kuroda, Bank of Japan Governor, said that the regulator will make changes in monetary policy if necessary since its current main task is to achieve the target annual rate of inflation at 2%. The USD / JPY pair has mentioned these statements without any consideration.
The Australian dollar strengthened today against its American counterpart after the news was released about the growth in Australia's business circles confidence level. According to the NAB report, the Australian business confidence index in September this year rose by 2 to 7 points. While economists expected growth is only 1 point. The index of conditions for doing business in Australia remained unchanged in September at 14 points.
