Best Forex System Download : Janet Yellen vs Mario Draghi

The euro fell at the beginning of the European session on the background of not entirely positive data on inflation in France and the German economy, but then managed to restore its position against the US dollar, as many traders are counting on the "correct" statements of European Central Bank President, Mario Draghi. Pressure on the euro rose after it was reported that consumer confidence in France in August this year declined. According to the report of the statistics agency Insee, the index of consumer confidence in France fell to 103 points from 104 points in July. The data fully coincided with the forecasts of economists. The fall of the index is directly related to the fact that a number of households began to assess their own financial situation more pessimistically. Also, the decline was due to reduced the popularity of the new president of France, Emmanuel Macron, which was pointed out as the reason why the index rose in early summer.

Data on the growth of the German economy did not impress traders. According to the report of the Federal Bureau of Statistics, in the second quarter of 2017, Germany's GDP grew by 2.5% year-on-year, which fully coincided with the initial estimate. Growth was due to corporate investment and increased private consumption. Investments grew by 1.2%. Show full picture Pressure on the euro due to weak data on the index of business sector sentiment in Germany, which declined in August, also showed. According to the report of the Ifo Institute, the German business sentiment index in August fell to 115.9 points from 116.0 points in July. Economists predicted the index drop to 115.5 points. As for the technical picture of the EURUSD pair, then, as noted in the morning review, everything will be tied up with statements made by the heads of the central banks of the United States and the eurozone. The movement above the monthly highs, located in the range of 1.1835-1.1850, will lead to the removal of a number of stop orders, which will allow large players to increase their long positions in the euro in order to update the levels of 1.1880 and 1.1930 as early as next week. This will also lead to the formation of a new wave of upward movement in risky assets. The weakness of the euro and, accordingly, the strengthening of the positions of the US dollar, with the return of the EUR/USD pair to the morning support level 1.1770, could lead to sharp selling, which will crash the trading instrument in the region of monthly lows located in the area of 1.1700 and 1.1655.