In view of yesterday's lack of important fundamental statistics, US dollar buyers failed to cope with the main task of breaking down and fixing below the key support levels in the area of monthly highs, and fixing profits led to the formation of an upward correction in risky assets.
The speech of the US Treasury Secretary Mnuchin on CNBC investors and traders took a positive view.
Mnuchin said that the US will cancel duties on Chinese goods for a total of $ 150 billion, but the US president can always return duties. The finance minister also believes that trade disagreements with China have never been a trade war, but the White House is still focused on the new North American Free Trade Agreement, which will be considered in the Congress.
From yesterday's data, we can only note the indicator of national activity calculated by the Federal Reserve Bank of Chicago, which grew in April this year compared with March. Growth was created by increasing production and employment. So, the index of national activity in April rose to +0.34 points against +0.32 points in March.
The representative of the Federal Reserve Bank of Bosnia, in general, was ignored by the market. Bostik noted that the Fed is very close to fulfilling its mandate regarding employment. He also noted the increase in inflation to a target level of 2%, which will probably exceed it for some time.
According to the representative of the Fed, the overall increase in wages remains moderate, but US GDP this year will grow by 2.5%.
The representative of the FRS, Harker, believes that the policy should not be included in the list of topics discussed at the meetings of the Committee on open market operations since the main task of the Federal Reserve is to create conditions for economic growth. He also said he supports two more rate hikes this year, but maybe three more. Doing this, according to Harker, should be done with caution.
As for the technical picture of the EUR / USD pair, the key support level is in the range of 1.1750, and if the buyers manage to keep it in the next few days, then there is a possibility of a larger corrective growth in the resistance area 1.1820 and 1.1850.
