Technical analysis and trading recommendations - https://fxpcm.com/en/fx/eurusd-11180-above-return-26052016
The tendency of strengthening of US dollar has reversed, and with the opening of today's trading day the dollar generally decreases in the foreign exchange market.
To confront the growing dollar and the pound after oil prices yesterday joined the Canadian dollar, which rose against the dollar after the Bank of Canada left interest rates unchanged at 0.5%. The central bank noted that the economy of the country in line with previous forecasts of the bank. According to the Bank of Canada, "the continuing geopolitical factors contribute to vulnerability to market sentiment."
Meanwhile, Brent crude oil futures in Asia today traded above $ 50 dollars per barrel, reaching the highest levels since the beginning of November last year. Spot price for Brent crude also broke through the level of 50.00.
Also today, more expensive yen and gold.
Yesterday came out strong data on Germany. Business optimism index, which is a leading indicator of current conditions and expectations in the German business sector, from the IFO in May amounted to 107.7 against 106.7 in April (forecast 106.8). The indices of expectations and current conditions also were higher than forecast.
Business activity in the US fell the other way around in the services sector in May (51.2 vs. 53.1 and 52.8 in April), according to data presented yesterday.
Until 12:30 (GMT), when the whole block out important economic data from the US, perhaps, is to refrain from short positions on the pair EUR / USD.
Investors also expect performances Fed Chairman Janet Yellen to be held on Friday (14:30 GMT). D.Yellen refers to low profile supporters about the pace of interest rate rises in the United States. Without its approval and support to the idea of an early interest rate increase in the short-term US dollar position can significantly falter.