The euro continued to decline and traded on Friday paired with the US dollar and other currencies after yesterday's comments by the European Central Bank.
Today, the regulator published a number of forecasts on inflation and economic growth for the next few years.
According to the ECB experts, GDP growth in 2017 is projected at 2.2% against the July forecast of 1.9%. For 2018, GDP growth is projected at 1.9% against the July forecast of 1.8%, whereas in 2019, an increase of 1.7% is expected against the forecast of 1.6% in July.
The ECB did not change expectations of growth in the harmonized inflation of consumer prices in 2017-2019.
All this suggests that the pause in the actions of the European regulator, after making changes to the asset buy-back program, is quite obvious and directly tied to the fundamental data, which ECB President Mario Draghi has repeatedly said. Most likely, this year, we will not see any significant changes in the policy of the Central Bank, and more attention will be paid to experts already acting to the US Federal Reserve System.
The US dollar continued to rise at the beginning of North American trading after the release of a more than positive report on the country's economy, which exceeded a number of economists' forecasts.
According to the Ministry of Commerce, the US economy in the third quarter of this year grew at a high pace, despite the hurricanes that hit the country in early autumn. The main support for the index was provided by high expenditures of American households and companies.
So, according to the first preliminary estimate, the US gross domestic product in the third quarter grew by 3%, while economists forecast growth of 2.7%. In the second quarter, GDP growth, according to the final estimate, was 3.1%.
Such good indicators, of course, will continue to support traders who are strengthening the US dollar by the end of this year.
As for the technical picture, the pair is gradually moving to its large support levels located at 1.1600 and 1.1560, where today there will be a larger profit taking on short positions at the end of the week. Before a major movement in the 1.1300 area, an upward correction and a resistance test of 1.1680 should occur, from which a larger downward channel will be built.
