Yesterday data on the Eurozone was weaker than expected and the euro was trading in the narrow range (Retail Sales grew 0.1% vs. expectations for 0.5%) amid the US data. Beige Book was released yesterday. According to it, the Fed saw "modest to moderate" growth across the US, which was largely expected by the economists. Consumer spending rose in most Districts; activity in the banking sector slowed down. However, before the publication it became known that voting on military intrusion to the US moved to September 9 or 12. The euro moved upwards sharply and closed the day adding 36 points.
Today weak data on Germany and the US is expected. Factory Orders in Germany in July is expected to drop 0.7%; US ISM Non-Manufacturing in August is expected to be 55.2 vs. 56.0. US Factory Orders in July is forecast to drop 3.4% vs. a 1.5% growth in June. Today G-20 summit opens and situation is Syria will be the top priority. At 16:30 UTC+4 ECB Press Conference is scheduled.
From the technical point of view, when the rate overcomes lilac trend line on the H4 1.3170 the first target 1.3140 opens, then the second target, 1.3100. If unexpected positive new is released and the level of the yesterday’s high is broken, movement to 1.3256 is possible.
