Attempts to raise EUR / USD quotes failed, especially in the afternoon when the bulls were unsuccessful in keeping the pair out of price level 1.1780. It led to a bearish move towards 1.1755, but may drop even further to lows 1.1710 and 1.1650, and maybe even to the 16th figure and support at 1.1540.
Now, the euro will only rise if the bulls manage to return EUR / USD at 1.1790, as such will guarantee an upward move to the wider sideways channel at 1.1755-1.1825.
Unfortunately, there are no significant news that could set off a bullish mood today, but tomorrow, the ECB will announce its decision on interest rates, and such would inevitably affect trading in the market.
In another note, recent reports say that the European Union is seeking to deepen cooperation with the United States, proposing the idea to reduce trade duties and facilitate mutual shipments of certain goods. European Commission Executive Vice President Valdis Dombrovskis said that the EU and the US needs to prove more than ever that they are important economic partners for each other, as the volume of trade in goods and services have now exceeded € 1.3 trillion per year. Concluding a deal that is beneficial to both parties will ensure a win-win result.
Deeper analysis to this gives the foreign trade surplus in Germany as an example, since it has increased noticeably this 3rd quarter. Recent data reveals that German exports have risen to 4.7% in July, whereas imports have grown by only 1.1%. The overall foreign trade surplus is € 18 billion, while forecasts expected € 16 billion.
As for the crucial EU GDP, recent assessments say that Q2 data was revised to -11.8%, and its annual value was also slightly less, at -14.7%.
