On Wednesday, representatives of the European Central Bank warned about the risks of a debt crisis in the eurozone. Yesterday, they shifted to assuring markets of further monetary policy easing by the central bank—of course, exclusively to prevent the development of a debt crisis. Unsurprisingly, such statements caused the euro to continue losing ground.
Today's economic calendar isn't as empty as in the past few days. However, if forecasts for business activity indices are confirmed, the course of events will again be shaped by representatives of the ECB. The expected rise in all business activity indices in the eurozone and the United States means these reports are unlikely to significantly influence market dynamics.
At the same time, ECB representatives have exhausted their talking points and have little left to surprise the market with. This situation suggests the pair might consolidate around current levels.
However, we must not overlook the dollar's overbought condition, which could support a slight rebound. Judging by current dynamics, this seems the most likely development.
