Dollar rally gained momentum

Wednesday, 31 August, the single European currency against the dollar in early trading moderately stronger after sliding a day earlier.

Yesterday, Tuesday, the currency pair EUR/USD during the trades has receded to the level of 1,1132, which contributed to the favorable for the dollar factors in the face of macroeconomic statistics and comments from officials.

According to data released yesterday, consumer confidence index in the U.S. in August increased from a revised July level 96.7 to 101.1, paragraph paragraph, although it was expected the increase only by a fraction of a point. This had a dollar local support, whereas the pressure on the Euro has provided data on Euro zone business climate index for August dropped 0.4 points, up 0.02 points, although it was expected at least a significant reduction.

Positive for the dollar were comments from Vice-Chairman of the fed Stanley Fischer again expressed that the US Central Bank may raise rates more than once in the coming months if emerging macroeconomic statistics will be favorable.

It is worth noting that last Friday, Fisher said that the fed may raise rates twice this year. In a constructive tone regarding the economic situation in the country was supported by the fed chair Janet Yellen.

Today locally to affect the dynamics of the EUR/USD may data for inflation and unemployment in the Eurozone, and the Chicago PMI (USA).

From a technical point of view, on 4-hour chart formed a “falling wedge”, the upper limit of which is not yet fully outlined, and at this stage we can assume that the course will test support at the lows of 1.1125 and move further South.

Source: MetaTrader Finam Ltd, 4-Hour Chart

Dollar rally gained momentum 31.08.2016

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