The Euro will be corrected ahead of Friday’s statistics from the United States
At auction in Europe purchases us dollar increased markedly. In the morning participants of the market began to buy the Australian dollar after the RBA statement. The regulator said that the monetary policy of the Bank will remain unchanged for the remainder of the year.
In the European session, the greenback received support against the Euro and the British pound. Sales of the single currency provoked concern because of the situation with the Italian budget. Vice-Prime Minister of Italy Luigi Di Maio said that the government will leave the budget deficit in 2019 in the amount of 2.4% of GDP. The ECB representative Olli Rehn confirmed that plans for the Italian budget deficit are cause for serious concern. The Euro fell to 1,1505.
The pair pound/dollar decreased to 1,2941 amid weak PMI report in the UK construction sector. The index of business activity in construction in the UK in September amounted to 52.1 (consensus: 52,8, the previous value of 52.9). He also had a positive impact on cross-a couple of Euro/pound, and that, in turn, the Euro/dollar. In the British statistics, the Euro rose against the dollar with 1,1505 to 1,1546.
Economic calendar for the us today is empty. Market participants are waiting for a speech by fed’s Jerome Powell, which can dramatically increase volatility in the market. In addition to his on the dynamics of the major pairs will continue to influence news for Brexit and budget of Italy.
The news today went to the section of technical analysis and time cycles, and this means that the Euro will fulfill them with a time delay. The longer the correction begins, the stronger it will be. The growth rate of the Euro/dollar above 1,1560 will provoke sellers to close shorts. I believe that the Euro will correct to 1.17 before NFP.